First Time Buyer deposit question

IamCait

Hi All, I'm finding it hard to get a definite answer on this one, even my bank wouldn't confirm it.

Basically, I'm wondering if my fiance and I qualify for the first time buyer relief of 10% deposit rather than the 20% for non first time buyer.I currently own and bought outright two apartments with cash in 2012 & 2013 and I'm unsure if we still qualify?

I've had some very split opinions with some people saying it's down to the Central Banks definition which would suggest unless a borrowing has been sought, well then I still come under the first time buyer relief. However, others say it's the revenue that implement legislation and they say that you must not have bought or built a house or apartment, and if you have, well then you are not eligible for the relief and must pay 20% deposit.

I'd love if someone could shed some light on this for me, thanks a mill.

IamCait

From the central bank website......

From what I can see, it only refers to a loan or borrower, nothing to do with buying a house or apartment previously.

However, some people are arguing that this is not the case???

Konata

The mortgage lending rules (i.e. the deposit requirements and loan limits) are contained in legislation, specifically S.I. 47 of 2015 i.e. the Central Bank (Supervision and Enforcement) Act 2013 (Housing Loan Requirements) Regulations 2015 (see here). The definition of first time buyer in the legislation is as follows:

"first-time buyer" means, subject to paragraph (2), a borrower to whom no housing loan has ever before been advanced;

So (in my opinion) for the purposes of the mortgage lending rules you are a first time buyer. If your bank has any issue with this, I would recommend contacting the Central Bank.

In the other thread, users also refer to the Help to Buy scheme which has a different definition of first time buyer. I am not as familiar with the definitions for this scheme but from reading the definition you would not be considered a first time buyer and therefore wouldn't be eligible to avail of the HTB scheme.

IamCait

Konata wrote: »

The mortgage lending rules (i.e. the deposit requirements and loan limits) are contained in legislation, specifically S.I. 47 of 2015 i.e. the Central Bank (Supervision and Enforcement) Act 2013 (Housing Loan Requirements) Regulations 2015 (see here). The definition of first time buyer in the legislation is as follows:

"first-time buyer" means, subject to paragraph (2), a borrower to whom no housing loan has ever before been advanced;

So (in my opinion) for the purposes of the mortgage lending rules you are a first time buyer. If your bank has any issue with this, I would recommend contacting the Central Bank.

In the other thread, users also refer to the Help to Buy scheme which has a different definition of first time buyer. I am not as familiar with the definitions for this scheme but from reading the definition you would not be considered a first time buyer and therefore wouldn't be eligible to avail of the HTB scheme.

Great, sounds good to me and it’s what I thought! My bank seemed to agree and they too said I’ll only need to have a 10% deposit. I wonder who is the best person to fully confirm this? Should I take the banks word for it or ask the revenue?

Konata

IamCait wrote: »

Great, sounds good to me and it’s what I thought! My bank seemed to agree and they too said I’ll only need to have a 10% deposit. I wonder who is the best person to fully confirm this? Should I take the banks word for it or ask the revenue?

The bank is the one determining the amount they'll loan you so they're the ones you want to listen to. Revenue don't have anything to do with housing loans/deposits unless it's the help to buy scheme (which, as above, you seemingly won't qualify for) or tax matters.

IamCait

Konata wrote: »

The bank is the one determining the amount they'll loan you so they're the ones you want to listen to. Revenue don't have anything to do with housing loans/deposits unless it's the help to buy scheme (which, as above, you seemingly won't qualify for) or tax matters.

That is true, the guy I was dealing with said he’ll go and ask the lords above and let me know but he was sure this was the case, if so it’s great news.

IamCait

Well the bank came back and I got full confirmation that anyone that hasn’t borrowed before is classified as a first time buyer, meaning I’ll only have to part with 10% deposit which is great, thanks for the help everyone.