Question for all the Housing experts

[Chicken Runner61]

The HMRC rule is very specific and is along the lines that you must never have owned or jointly owned a property anywhere in the world ever. You could try it on, but its not your mortgage being withdrawn that you should worry about, its going to jail for tax fraud.

I would point out that several people have asked this same question purely out of curiosity as to how they record the details as it could lead to complications if you don't know.

eg.......

So what if you put your kids on the title of your house so they own it when you die but they want to buy a house in their own right as FTB's with a mortgage?

If I did that I would possibly not be doing them any favours ....


Its the phrase "first time buyer" thats wrong and then with the fact that some people in life may have to or want to start again and can't get a lower mortgage rate or in this case save the stamp on a low property.

Also I know people who lost their houses through divorce want their kids to stay with them and have tried to start again with less money than a FTB and could really do with not paying £2-3k Stamp


The whole system is a mess really

 

[eastlondonseagull]

As far as I'm aware, anyone not on the property ladder now is classed as a first-time buyer. I sold 18 months ago and am still renting, so I would be considered a first-time buyer.

But, my concern is about joint mortgage applications. My missus already owns a tiny back-to-back up in Yorkshire, so will that prevent us getting the stamp duty holiday if we apply for a joint mortgage to get us back on the ladder as a family?

.

 

[eastlondonseagull]

The banks are quite happy with the current situation so you might have to wait a while.

They make a nice sum on arrangement fees and paperwork and then get 5% lending you your own tax money which they borrow for 0.3%!!!

Nice work if you can get it

The banks are f***ing bastards

 

[eastlondonseagull]

The HMRC rule is very specific and is along the lines that you must never have owned or jointly owned a property anywhere in the world ever. You could try it on, but its not your mortgage being withdrawn that you should worry about, its going to jail for tax fraud.

Oh FFS! So the banks treat people no longer on the ladder as first-time buyers, but the HMRC don't. We're being shafted every which way

.

 

[Uncle Spielberg]

...which means you were wrong! (ie the issue has nothing to do with your lender but everything to do with HMRC)

Oh for fucks sake Darren give it a bloody rest will you. What exactly is your problem ?. Are you bored today or something ?. Go out for a walk or have an angry wank or something.

 

[Uncle Spielberg]

The credit search the lender does will show all credit for the last 6 years including mortgages. I would suggest no one tries to get around this as you could have a mortgage offer, exchange contracts and pay a deposit which is not refundable and legitimately have the offer withdrawn by the lender before completion if they subsequently find out you are not a first time buyer

This is actually what I said re the mortgage but if people want to risk it and have their offer withdrawn between exchange and completion and lose their deposit go ahead.

 

[Simster]

Oh for fucks sake Darren give it a bloody rest will you. What exactly is your problem ?. Are you bored today or something ?. Go out for a walk or have an angry wank or something.

I'd put him on ignore if I were you, Garth.

 

[Uncle Spielberg]

Sticks and stones. There is no point in abusing me anymore as I can't see it. Do something more productive with your time.

 

[Bozza]

I'd put him on ignore if I were you, Garth.

Charming...

 

[ditchy]

The credit search the lender does will show all credit for the last 6 years including mortgages. I would suggest no one tries to get around this as you could have a mortgage offer, exchange contracts and pay a deposit which is not refundable and legitimately have the offer withdrawn by the lender before completion if they subsequently find out you are not a first time buyer.

Nothing to do with lender .. if you have an offer its for affordable reasons granted by the lender.The fact that you may not be a first time buyer will mean that your solictor doing the conveyencing will then demand that you cough up stamp duty on behalf of the govt .
For first time buyer puposes it is difficult to actually class who is and who isn't but normal rules state that if you have not had a mortgage for 3years you are entitled to be called a first time buyer. You may also be classed this if you have come out of a relationship and are buying on your own for the first time even though you had a joint mortgage.

 

[Uncle Spielberg]

For the last time the lender can have the right to withdraw the mortgage offer letter if it has been issued on the basis they have declared to be first time buyers as a lot of rates are specifically for first time buyers. If the lender finds out they are not they may withdraw the offer and that is a FACT.

 

[seagullsovergrimsby]

I paid off the mortgage 10 years ago , if I move house will I be classed as a first time buyer if I dont require a mortgage and the property is aimed at the FTB market ?

 

[Chicken Runner61]

For the last time the lender can have the right to withdraw the mortgage offer letter if it has been issued on the basis they have declared to be first time buyers as a lot of rates are specifically for first time buyers. If the lender finds out they are not they may withdraw the offer and that is a FACT.

Yes, Yes we get that but thats just for the mortgage side but I can't see the lenders getting too up tight about someone getting a FTB rate if they have not already got a loan elsewhere or habe not had a mortage for years.

More important is stamp duty issue where you could have a small share in a shack in Woolamuloo left by your great uncle bruce and thereby be excluded from the stamp duty exemption as a FTB.

 

[Uncle Spielberg]

I agree CR but let me assure you if a lender finds out you have a ftb rate and you are not a ftb they will put the offer and rug from under your feet without a second thought.

 

[Emily's Mum]

Some (few) people don't need a lender at all - gift/inheritance/lottery.

I always thought stamp duty was the tax to have your name recorded on the land registry (deeds) of a property - it matters not where the funds came from for the purchase.

Thus once your name has been recorded on the land registry, you can never again be a first time buyer [unlike some girl I once knew who became a born-again virgin]

This was the case many many years ago (before land registration was compulsory) as the conveyance (the document that transferred ownership of the property) had to go to the Inland Revenue to be physically stamped.

 

[Emily's Mum]

All lenders have their own criteria for what constitutes being a First Time Buyer. At HSBC you were a first time buyer if you weren't selling a house in order to buy another one. However, the branches would bend the rules just to get the mortgage business. The mortgage processing centre wouldn't question what the branch had agreed to & the solicitors would not question the term First time buyer on the Loan Agreement Form.

I think there may be problems when the banks start telling people they are first time buyers & the solicitors tell them that they are not.

 

[The Maharajah of Sydney]

More important is stamp duty issue where you could have a small share in a shack in Woolamuloo left by your great uncle bruce and thereby be excluded from the stamp duty exemption as a FTB.

It's Woolloomooloo actually .
And if ya old uncle Bruce had left you even
a small share , you probably wouldn't be quilbbling
about missing out on a little bit of stamp duty relief ..