Posted on 23 May 2011 by Faheem

Hi, I am looking to buy a house using a residential mortgage. I have a mortgage for the property in which I currently reside.  My current residence was mortgage free until we remortgaged 5 years ago to carry out extension work.  I currently share the mortgage with my mother and my brother. The most recent closing balance was £143k, with the property being valued at around £200k. 

I would like to know if I am regarded as a first time buyer and the mortgage value I can get with a deposit of around £30k, and an annual income of around £80k?


You will not be classed as a first time buyer if you are named as a joint owner on the title of your current residence.  It is possible to be named on a mortgage without being named on the deeds, but it is very unusual and I suspect that it is not the case.  You should check the correspondence from the time and if it is still not clear then your solicitor should know the answer.

Your status will affect when you start paying Stamp Duty Land Tax.  As a first time buyer you do not pay SDLT on properties priced under £250,001, but as a subsequent purchaser you will pay 1% if the purchase price falls between £125,001 - £250,000.

Whether or not you are a first time buyer is unlikely to affect the amount you can borrow, but the fact you are named on the existing mortgage will.  Although you are a joint borrower, Lenders will want your income to cover the whole of the existing mortgage in addition to any new borrowing.  This will severely restrict how much you can borrow and whereas you may have been able to borrow say £320,000 this could be reduced to £177,000.  The exact figures will depend on which Lender you choose as each has their own affordability calculation, some use the whole debt as above and others take the monthly payment and deduct it as a commitment before making the calculation.

I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers.  Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to advise you on your situation.


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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