Can You Be a First Time Buyer Again?

If you have owned a property in the past at any point then lenders will tend to class you as a homemover, not a first time buyer.

Who Is Classed as a First Time Buyer? 

A first time buyer is someone who has never owned or required a major interest in a residential property or area of land in the UK or anywhere else in the world. 

This means, if you have ever owned a property at any point, even if it was decades ago or a property you inherited, you will not be eligible for the first time buyer Stamp Duty exemption. You will instead pay Stamp Duty Land Tax at the standard rates as you can’t technically be a first time buyer twice. 

Interestingly, some lenders may give previous homeowners access to first time buyer products under specific circumstances. 

When Are You Considered a First Time Home Buyer Again by Lenders? 

Although not technically a first time buyer, some lenders may treat you as a first time buyer if you have not owned a house for the last 3 years. This means you may be eligible for some of their first time buyer mortgage products that come with certain benefits like cashback or free legal services. 

Nonetheless you still won’t be eligible for the first time buyer Stamp Duty exemption as you have owned a property at some point in your life. 

Don’t be too concerned if lenders don’t consider you for first time buyer products as most lenders offer the same (or very similar) products to both first time buyers and previous homeowners. 

Am I Classed as a First Time Buyer if I Have Had a Mortgage in the Past? 

If you have had a mortgage in the past, it’s likely you will have been on the title deeds of the property and therefore won’t be classed as a first time buyer and qualify for the first time buyer Stamp Duty exemption. 

It doesn’t matter if you’ve since been removed from that mortgage and the title deeds, you still will be a previous homeowner. 

Can a First Time Buyer Buy with a Second Time Buyer? 

A first time buyer and second time buyer can take out a joint mortgage and purchase a property together, but as a couple you won’t be eligible for the first-time buyer Stamp Duty exemption. 

It is possible to qualify for the Stamp Duty exemption if only the first time buyer(s) goes onto the title deeds of the property, even if you’re both on the mortgage. This is called a joint borrower sole proprietor mortgage. 

What to Consider When Buying a Home Again

Income and Affordability Changes 

If your circumstances have changed, like you've taken a different job or you now want to buy a property based on your sole income, this will impact your mortgage affordability in terms of your maximum borrowing. Therefore, it’s worth speaking to a mortgage broker about your circumstances and needs so they can find you the best deal. 

Buying Later in Life 

If you've separated from your partner later in life, and you're concerned age may be a barrier to securing a mortgage deal, speak to a mortgage broker. We know which lenders have more flexible lending criteria including maximum age limits for mortgages, so will be able to secure you a competitive deal. 

Being a First Time Buyer Again Summary  

Once you have bought a property, you technically lose the status of being a first time buyer.

However, there are circumstances and conditions under which you may be treated as a first time buyer again by lenders or certain scheme providers.

1. No longer a homeowner: 
   • If you have sold or otherwise no longer on the titles of your previous property and are no longer a homeowner, you may be eligible for first time buyer benefits with Lenders. This could include certain financial incentives such as cashback or free legals  
2. Time lapse: 
   • Some lenders may consider you a first time buyer again after a certain period has passed since you last owned a property. The specific time frame can vary, so it's essential to speak with a broker who will be aware of the criteria amongst lenders  
3. Divorce or separation: 
   • If you owned a property with a partner, and through divorce or separation, you are no longer a homeowner, you might be considered a first time buyer again  
4. Government schemes: 
   • Government schemes or initiatives aimed at supporting first time buyers may have specific criteria and definitions. Some programs may consider individuals as first time buyers if they meet certain conditions, such as not having owned a property in the past 5 years  

It's important to note that the eligibility criteria for first time buyer can vary between lenders. If you are in a situation where you no longer own a property and are considering buying again, it's best to speak with a mortgage broker who can discuss all the options based on your circumstances. Call us on0330 433 2927 to talk to one of our expert advisers today.