For the purpose of the Central Bank's rules what is relevant is whether he is a first-time borrower or not, not a first time buyer.My son is thinking of buying a doer upper cottage for 100k for his PPR. If he uses his savings to buy it and sells it in a few years time to acquire a bigger house with a mortgage does he lose his first time buyer status or does first time buyer status apply when he takes out his first mortgage ?
“first-time borrower” means, subject to paragraph (2), a borrower to whom no housing loan has ever before been advanced, or a borrower in respect of which one or more of the following apply: (a) (i) the borrower, together with a spouse, a civil partner, or a cohabitant, was previously advanced a housing loan for principal home purposes, and was treated as a first-time borrower in respect of that housing loan, (ii) the marriage, civil partnership or relationship has ended, (iii) the borrower has divested of his or her interests in the residential property the subject of the housing loan referred to in (i), and has discharged of his or her liabilities in respect of that property, and otherwise does not have an outstanding liability under any other housing loan, and (iv) the borrower is advanced a new housing loan for principal home purposes; (b) a borrower is advanced an equity release product; (c) a borrower who was advanced a housing loan in respect of a principal home which the borrower has since sold, or has been divested of, as part of a personal insolvency or bankruptcy arrangement or proceedings or other legal process consequent upon same, and is advanced a new housing loan for principal home purposes;
He would be a FTB from a mortgage perspective, as he's never had a home loan, so 10% deposit etc. However, for all other purposes he is no longer a FTB, so would not be eligible for schemes like Help to Buy etc,Now I read that the Central Bank defines a FTB as someone who has never taken out a housing loan. So he would be a FTB.
Thanks for clarification on this.He would be a FTB from a mortgage perspective, as he's never had a home loan, so 10% deposit etc. However, for all other purposes he is no longer a FTB, so would not be eligible for schemes like Help to Buy etc,
How would help to buy work say in five years time and assume my son gets married and there is a joint application one of which has not previously owned a home ?He would be a FTB from a mortgage perspective, as he's never had a home loan, so 10% deposit etc. However, for all other purposes he is no longer a FTB, so would not be eligible for schemes like Help to Buy etc,
If either party in a couple jointly buying a residential property has previously owned one, then they are not FTBs for that purpose.How would help to buy work say in five years time and assume my son gets married and there is a joint application one of which has not previously owned a home ?
What new rules?He could declare himself bankrupt & wait 3 years, or get married & then get a divorce and then become a first time buyer again under new rules can't he?
I think the criteria to qualify for exemptions in the Central Bank's macro-prudential rules.What new rules?
Yes, a long winded way to qualify for something he already qualifies for...I think the criteria to qualify for exemptions in the Central Bank's macro-prudential rules.
But getting married and divorced and/or achieving bankruptcy is not how I'd attempt to qualify.....