New mortgage

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bclbcl
bclbcl Posts: 11 Forumite
in Mortgages & endowments
Hello,

My wife currently owns a property. I am looking to buy an additional property on my own and use it as a residence. As i understand since my wife already owes a property i lose the stamp duty tax relief which is not a problem.

Question - Since i am no longer considered as a first time buyer, how much deposit would i need to keep upfront? Will it be 10% percent or will i need 20% deposit as i am not considered as first time buyer?

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  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    Don't forget additional SDLT.


    Deposit is whatever your proposed lender will accept.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    edited 16 May 2019 at 11:51AM
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    There are two different deposits.
    There's the up front deposit when you exchange contracts. Classically 10% but often less than that in chains and negotiable, it's whatever the vendor will accept.
    Then there's the deposit which together with the mortgage makes up the money used to buy the house. This deposit includes the upfront deposit and the difference is paid at completion.
    So, say it's a £200k house, you are getting a 75% mortgage so have £50k cash. At exchange you pay 10% (if that's what's agreed) , £20k. At completion you hand the remaining £30k over.
    As said you'll also need to pay an extra £6k in SDLT as well.
  • bclbcl
    bclbcl Posts: 11 Forumite
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    AnotherJoe wrote: »
    There are two different deposits.
    There's the up front deposit when you exchange contracts. Classically 10% but often less than that in chains and negotiable, it's whatever the vendor will accept.
    Then there's the deposit which together with the mortgage makes up the money used to buy the house. This deposit includes the upfront deposit and the difference is paid at completion.
    So, say it's a £200k house, you are getting a 75% mortgage so have £50k cash. At exchange you pay 10% (if that's what's agreed) , £20k. At completion you hand the remaining £30k over.
    As said you'll also need to pay an extra £6k in SDLT as well.


    How did you get the £6000 for SDLT? For 200k would it not be £7500 for stamp duty ?

    I would ideally like to get 90% mortgage and put 10% deposit (20k) , do you think lenders will have a problem giving me a mortgage since i am not considered a first time buyer? (i am not worried about passing mortgage stress test etc, just wondering if i'll able to get a 90% mortgage if i am considered as second time buyer)
  • MovingForwards
    MovingForwards Posts: 16,921 Forumite
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    Is it going to be YOUR permanent and main residence?
    Mortgage started 2020, aiming to clear it in 2026.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    bclbcl wrote: »
    How did you get the £6000 for SDLT? For 200k would it not be £7500 for stamp duty ?

    I would ideally like to get 90% mortgage and put 10% deposit (20k) , do you think lenders will have a problem giving me a mortgage since i am not considered a first time buyer? (i am not worried about passing mortgage stress test etc, just wondering if i'll able to get a 90% mortgage if i am considered as second time buyer)


    6k extra. I did underline "extra". I've put it in red this time as well :D

    (yes, the total comes to £7,500)



    What you will be lent is based on affordability not whether you are a FTB.
  • bclbcl
    bclbcl Posts: 11 Forumite
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    Yes it will be main residense
  • bclbcl
    bclbcl Posts: 11 Forumite
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    AnotherJoe wrote: »
    6k extra. I did underline "extra". I've put it in red this time as well :D

    (yes, the total comes to £7,500)



    What you will be lent is based on affordability not whether you are a FTB.

    Got it :) thanks
  • amnblog
    amnblog Posts: 12,443 Forumite
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    90% mortgages are not limited to first time buyers
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • bclbcl
    bclbcl Posts: 11 Forumite
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    amnblog wrote: »
    90% mortgages are not limited to first time buyers

    When considering for a mortgage will the lender assume it as a second mortgage since my partner owns a home - even though this property i will be buying it on my own and i dont have any other mortgages?
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
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    bclbcl wrote: »
    When considering for a mortgage will the lender assume it as a second mortgage since my partner owns a home - even though this property i will be buying it on my own and i dont have any other mortgages?

    If you read that back you will clearly see it's your first mortgage !
    I think you've got confused with the near to meaningless "first time buyer" phrase.
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