buying first home

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winston

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Hi, I am in the process of looking at houses with my partner. we are hoping to take out a mortgage for 60% and come up with rest in cash. Only one of us is first time buyer so should first time buyer go on mortage alone to save in stamp duty?

Also, if the balance in cash wasn't available immediately but would be definately available in 3 month's time, would banks be willing to give the 60% now?

Thanks very much, am very clueless in this area :)
 
Hi,

1) Get mortgage approval from bank.
2)You have to find a house and make an offer that is accepted by vendor. Long process if you ask me coz my OH is choosy and believe me we had seen a lot over last 3 months after getting mtg. approved.
3) If offer accepted you will have to pay in most cases 3-5K instantly and around 10K when signing contracts. Than you do snag and stuff go back to your bank for cheque of the amount you want to borrow takes around 4-12 weeks depending on you.

It is at step 3 that bank will issue you funds after cheking that you have rest to close the deal.


So 3 months is not a long time as far as I am concerned.
 
regarding the stamp duty, if a non FTB goes on either the title to the property or the mortgage account then this negates the FTB relief. If the non FTB goes on the mortgage only, and not the title to the property, stamp duty will be still payable as the revenue will treat that person as a purchaser of the house thus cancelling the FTB relief. There is one small exception, in that in this scenario, stamp duty will not be paid if you can get a letter from the bank confirming it was a requirement of the loan that the non FTB go onto the loan. This non FTB must also, not have any interest in the house or make payments etc..

This exemption was disigned more for parents etc, going on a mortgage to help the son/daughter get the actual loan.

Hope I have totally confused you!!
 
winston said:
Hi, I am in the process of looking at houses with my partner. we are hoping to take out a mortgage for 60% and come up with rest in cash. Only one of us is first time buyer so should first time buyer go on mortage alone to save in stamp duty?

Also, if the balance in cash wasn't available immediately but would be definately available in 3 month's time, would banks be willing to give the 60% now?

Thanks very much, am very clueless in this area :)
Click to expand...

If a first time buyer (FTB) and a non first time buyer purchase together then the FTB loses their first time buyer status unless the non FTB has joined at the request of the lender.

Why would you need 60% now if you don't have the other 40%. Just wait three months, find a property you wish to bid on and then apply for the mortgage. If you have alreeady found the property but do not have the 40% then you will not be able to buy now.

[broken link removed]
 
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