First Time Buyer

Posted on 5 March 2011 by Roger Tope

Can my daughter buy a house on a residential mortgage with the genuine intention of living in it in 3 years time but letting it out up to then? If so, will HMRC accept the offset of mortgage interest against rental income? Would she still be eligible for first-time-buyer stamp duty exemption?


If you tell the mortgage lender that this is your daughter's intention then they will most likely decline an application for a residential mortgage. If you do not tell the Lender this is tantamount to mortgage fraud and your daughter could lose the property, end up in jail and have her credit rating ruined for life.

The First Time buyers threshold for the purchase of a residential property is currently £250,000. It is my understanding that your daughter would not qualify for this if she is not going to be living in the property. I recommend that you speak to a specialist tax adviser, solicitor or HRMC to confirm this.

I believe you would benefit from speaking to one of our independent mortgage advisers about BTL mortgages. Please call on 0344 346 3672 tell the consultant the date and title of your question, they will be able to look at your daughter's situation and advise you accordingly.


Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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