Can I get advise from a Mortgage guru please

ScottL

Hi, Advise from someone better educated than me in this field would really be appreciated. Some background to begin..I am 34, married with a house, mortgage free in my own name. We are looking to buy a property local to me. Current savings are not sufficient so a mortgage is needed. A buy to let mortgage has the obvious disadvantage of having a lower loan to value requirement and higher interest rate. As I am considered a first time buyer I believe I have the option of saying that the new property is going to be our new home and my current home will be rented, therefore benefiting from a first time buyer mortgage rather than a BTL. Can anyone see any potential problems here? The second question is whether to apply solely or jointly for the mortgage. Because of the relatively low property value, we may have the option of both. Is it worth keeping one of us still considered as a first time buyer for future? There is a remote possibility of building our own home on a site gifted to my wife from a family member. However given the cost of this there is no possibility of my wife doing this solely, meaning a joint application, therefore FTB no longer relevent?
If someone could advise on the most efficient way to approach this it would really help

LuasSimon

If you have a house already you are not a first time house buyer.

ScottL

LuasSimon wrote: »

If you have a house already you are not a first time house buyer.

Had I not completed this form today and seen the definition I would have tended to agree with you. However it seems this is not the case.

duffman13

ScottL wrote: »

Had I not completed this form today and seen the definition I would have tended to agree with you. However it seems this is not the case.

You are not a first time buyer if you own a property, similar situation to you last year. You are not a first time buyer unfortunately. Go to a broker, options might be better and you might get some really good advice

Jim2007

As I am considered a first time buyer I believe I have the option of saying that the new property is going to be our new home and my current home will be rented, therefore benefiting from a first time buyer mortgage rather than a BTL.

So long as you meet the definition of a first time buyer and it is in fact your home it should not be an issue. However obtaining money under false pretenses could have serious consequences later should the bank become aware of it and decide to take action.

ScottL

LuasSimon wrote: »

If you have a house already you are not a first time house buyer.

Had I not seen the definition on the application form I would have tended to agree with you. However it seems this is not the case

ScottL

duffman13 wrote: »

You are not a first time buyer if you own a property, similar situation to you last year. You are not a first time buyer unfortunately. Go to a broker, options might be better and you might get some really good advice

Central bank of Ireland definition for what its worth

The J Stands for Jay

I know someone who lives with his wife Inna house she inherited from her parents. They were looking into moving and the broker confirmed with the potential lenders that they both qualified as first time buyers.

dennyk

"First-time buyer" criteria is different depending on who's asking. For the purpose of a mortgage, you're generally a first-time buyer if you've never had a mortgage before, even if you've owned a residential property that wasn't mortgaged. For government initiatives like the Rebuilding Ireland or Help to Buy schemes, though, you are generally only considered a first-time buyer if you've never owned a residential property before, regardless of whether you had a mortgage or not.

namloc1980

dennyk wrote: »

"First-time buyer" criteria is different depending on who's asking. For the purpose of a mortgage, you're generally a first-time buyer if you've never had a mortgage before, even if you've owned a residential property that wasn't mortgaged. For government initiatives like the Rebuilding Ireland or Help to Buy schemes, though, you are generally only considered a first-time buyer if you've never owned a residential property before, regardless of whether you had a mortgage or not.

Not fully correct. From the Revenue themselves https://www.revenue.ie/en/property/help-to-buy-incentive/who-can-claim-the-help-to-buy-htb.aspx:

Who can claim the Help to Buy (HTB) incentive?
To claim HTB, you must:

- be a first-time buyer
- buy or build a new property between 19 July 2016 and 31 December 2021
- live in the property as your main home for five years after you buy or build it
- be tax compliant, if you are self assessed you must also have tax clearance.

To qualify, you must not have previously bought or built a house or apartment, either on your own or jointly with any other person. If you are buying or building the new property with other people, they must also be first-time buyers. If you have inherited or been gifted a property it will not affect your eligibility.

Trish56

This is not correct - if you never had a mortgage you are a First Time Buyer

LuasSimon wrote: »

If you have a house already you are not a first time house buyer.