Mortgage question

[bhafc99]

My wife and I used to own a house. Then we sold it and moved abroad (where we rent) for several years.

When we go back to the UK, will we be classed as 'first time buyers', because we don't have a property to sell, existing mortgage etc.

Or not?

 

[Uncle C]

The government use examples like you to boost the 'first time buyer' figures. So Yes.

 

[Uncle Spielberg]

No. It is not the government lending the money, it is the lender.

 

[Dusty_Fryer]

When I was an agent, I never really used the term 'first time buyer' - just 'in rented' or 'no property to sell'. Makes you more of an attractive proposition to vendors because there is no downward chain to go wonky and they don't see you as a novice. I think some of my more cynical colleagues liked Hoovering up FTBs because they were more gullible - easier to get mortgage / conveyancing / insurance / U-Switch leads etc.

 

[sten_super]

My wife and I used to own a house. Then we sold it and moved abroad (where we rent) for several years.

When we go back to the UK, will we be classed as 'first time buyers', because we don't have a property to sell, existing mortgage etc.

Or not?

If you are talking about being able to apply for a particular bank's first-time buyer rates, the precise definition will vary from institution to institution, so I can only suggest that you contact them individually to ask. I vaguely remember seeing 'not holding a mortgage for 2 years' being mentioned from when we applied for our own FTB mortgage 6 months ago, but I can't remember which bank that was.

 

[Uncle Spielberg]

Why would you want to be classified as a ftb anyway ?, it is not an advantage and quite often a disadvantage. The rates are not better for ftb's.

 

[sten_super]

Why would you want to be classified as a ftb anyway ?, it is not an advantage and quite often a disadvantage. The rates are not better for ftb's.

At low deposit values FTB rates can be better than standard rates, in my (admittedly limited) experience. Or indeed some deposit values are only available to 'FTBs'.

 

[Uncle Spielberg]

At low deposit values FTB rates can be better than standard rates, in my (admittedly limited) experience. Or indeed some deposit values are only available to 'FTBs'.

No, also they would not be any different than second time buyers.

 

[Westdene Seagull]

Why would you want to be classified as a ftb anyway ?, it is not an advantage and quite often a disadvantage. The rates are not better for ftb's.

Don't FTB get a higher stamp duty starting point ? I'm sure this used to be the case but not having been a FTB for a long time my memory may have failed me !

 

[The Antikythera Mechanism]

The government use examples like you to boost the 'first time buyer' figures. So Yes.

Your "House prices to crash" thread proved to be a damp squib

 

[dragonred]

99.99% certain that Stamp duty benefit for first time buyers now gone - but from what I remember of the rules if applicant had ever owned a property before that automatically meant not a FTB for purpose of getting the discount!

 

[sten_super]

No, also they would not be any different than second time buyers.

You are the person with experience in this area, so I'm happy to bow to your superior knowledge. All I know is that a couple of the banks offer rates which are supposedly 'first time buyer exclusives' which allegedly have lower rates than their standard high deposit offerings.

 

[seagullsovergrimsby]

99.99% certain that Stamp duty benefit for first time buyers now gone - but from what I remember of the rules if applicant had ever owned a property before that automatically meant not a FTB for purpose of getting the discount!

Stamp Duty exemption for FTB up to £250k ended last March

 

[piersa]

Your "House prices to crash" thread proved to be a damp squib

Only so far. When inflation rises and rises, the interest rates will have to rise and then watch the repos' go up.

 

[bhafc99]

Thanks for the help everyone.

My impression is that FTB rates can sometimes be better, especially if our deposit is likely to be around 15–20% LTV, rather than the 25%+ most lenders are pitching their best rates at.

 

[The Antikythera Mechanism]

Only so far. When inflation rises and rises, the interest rates will have to rise and then watch the repos' go up.

When will UK interest rates rise? Inflation is stuck above target but markets suggest 1% rate is still five years away

Read more: When will UK interest rates rise? | This is Money

 

[Triggaaar]

Only so far. When inflation rises and rises, the interest rates will have to rise and then watch the repos' go up.

But Uncle C is adamant that house prices are not determined by interest rates.

Thanks for the help everyone.

My impression is that FTB rates can sometimes be better, especially if our deposit is likely to be around 15–20% LTV, rather than the 25%+ most lenders are pitching their best rates at.

In that case, you are a first time buyer. Basically, shop around for the best rate you can get. If that rate means you need to be a first time buyer, then say your a first time buyer. PM me if you'd like detailed advice on this.

 

[bhafc99]

Thanks for the help everyone.

My impression is that FTB rates can sometimes be better, especially if our deposit is likely to be around 15–20% LTV, rather than the 25%+ most lenders are pitching their best rates at.

 

[Uncle Spielberg]

But Uncle C is adamant that house prices are not determined by interest rates.

In that case, you are a first time buyer. Basically, shop around for the best rate you can get. If that rate means you need to be a first time buyer, then say your a first time buyer. PM me if you'd like detailed advice on this.

I don't believe this is the case. Also as said, it is a disadvantage to be a first time buyer as you have no history of having a mortgage and paying it, therefore in this economic climate it is an advantage to show you have had a mortgage in the past and maintained the payments so why is this thread wanting the OP to go down the road of basically lying and disadvantaging himself ? There is no differential in rates except a couple of lenders charge a lower arrangement fee for ftb's, Nationwide. PM me when you want to look into this.

- - - Updated - - -

Thanks for the help everyone.

My impression is that FTB rates can sometimes be better, especially if our deposit is likely to be around 15–20% LTV, rather than the 25%+ most lenders are pitching their best rates at.

The rates would be the same for a ftb or stb. You are confusing this with different rates per loan to value bands.

 

[Triggaaar]

I don't believe this is the case.

I haven't said otherwise.

why is this thread wanting the OP to go down the road of basically lying and disadvantaging himself ?

It's not. I said find the best deal, and 'if that rate means you need to be a first time buyer...'. You're simple saying that the best deal he can find will not be for a first time buyer, so he won't say he's a first time buyer will he.

a couple of lenders charge a lower arrangement fee for ftb's

Better than a kick in the face.