One of us isn’t a first time buyer, so can we get 90%?

Something that comes up with regular frequency is a question about ‘being a first time buyer’. The simple version is ‘one of us bought a house in (year XXXX) or had a house in the UK or invested in one with a friend’ etc. Now that person is in a relationship with a new person and they want to know if as a couple, they are a first time buyer.

The answer? No.

Sadly, this is similar to the way that Tax Relief at Source used to work, if you had bought a house anywhere in the world, including Timbuktu, you are no longer a first time buyer and by extension, neither is anybody that you buy a house with.

The fix? Sometimes the one person who is a first time buyer can qualify for the loan and they are able to do it themselves, years ago the answer was ‘two on mortgage one on the deed’ in order to be able to obtain Tax Relief at Source (which is now gone for all loans)

Nowadays you see only that where a son or daughter gets a site and their partner is off the deed so there isn’t a tax implication, but that doesn’t work with a loan exception because the second person is obviously on the mortgage and their presence enforces the LTV and LTI restrictions.

Solution? If you want to be a first time buyer don’t buy a house, once you do it’s gone forever, think about it the way you might with the concept of ‘virginity’, you can’t grow it back.

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