Inherited First Time Buyer Mortgage

Posted on 24 September 2018 by Hannah


I inherited my fathers house. I've never had a mortgage. Would I be still eligible to get a first time buyer mortgage to release a lump sum?


I've inherited a property, could I raise a first time buyer mortgage on it?

Hi Hannah,

Thank you for your enquiry. As you own a property now, you will be deemed a homeowner and the process of raising money of this property will be via a re-mortgage with capital release. That is not necessarily a bad thing and potentially our consultants can find you a deal with free valuation and free legals. The mortgage will be assessed on your personal and financial circumstances and the purpose of raising capital will also have to be acceptable.

Lenders all have similar definitions, with most adopting the following wording: " We define a first time buyer as an applicant that has never owned a property". What this means is you will be ineligible for any reduced application fees or special first time buyer products, but it still leaves you with a wide range of products, incentives and deposit requirements.

Whether or not you are a first time buyer is unlikely to affect the amount you can borrow, but if you were named on the existing mortgage will. As you have had a mortgage previously you would not qualify for a first time buyer mortgage and that will impact the amount of stamp duty you will be required to pay.

I would suggest it's worth us speaking together to discuss your particular requirements with one of our consultants. If you'd like to do so, then please let me know and I'll arrange a convenient time for one of them to contact you.

Regards,

Alistair

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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