Selling and buying a new house simultaneously.

2 of 2

davidmcn

21-12-2016

Originally Posted by Roush:
“However a mortgage company will classify you, be sure to remember that to qualify for first time buyer relief on stamp duty you must have never owned a residential property before.

https://www.gov.uk/hmrc-internal-man...ual/sdltm29830”

You also need a time machine:

https://www.gov.uk/hmrc-internal-man...ual/sdltm29810

Quote:
“The relief applies:
•where the effective date of the transaction is on or after 25th March 2010 and before 25th March 2012”

wench

21-12-2016

Originally Posted by Roush:
“Any difference in rates will be down to LTV rather than whether or not a home is currently owned, all other things being equal. First time buyers will typically have less capital available than someone who is moving.

First time buyers will typically fall into the high LTV category where smaller deposits are accepted but the interest rates are higher. It's about how much capital you have and therefore how much risk your mortgage would pose to the lender.”

Ah that makes sense now!

I do certainly have a higher deposit now with the increased equity I currently have, added to that I have a higher salary than before too, so hopefully I will still get a similar mortgage interest rate to what I have now.

wench

21-12-2016

Originally Posted by c4rv:
“You keep talking about rates, are you talking about stamp duty or mortgage interest rate ?

One of the factors effecting your mortgage interest rate will be your credit score. This is effected by showing that you can take on and pay debt (why people who have never taken credit get a bad rating), plus being a existing home owner will boost your credit score. So its quite possible that existing homeowners can get a better interest rate even when LTV is the same as first time buyer.

At the same time, there are a couple of government schemes for first time mortgage borrowers that may make it easier for them to get a mortgage. I have a friend who lived with parents, married an existing homeowner and moved in with him. When they wanted to up size, she was able to get government help if the mortgage was in her name only. However this would potentially caused issues if they split so they didn't go down that route in the end.”

Apologies, I was referring to mortgage interest rates.

Ok I guess I will have to check with my existing mortgage lender what rates they are willing to offer as a homeowner seller, and as a new buyer without a property to sell first, to determine whether its worth selling first then buyer or whether to sell and buy simultaneously.

Roush

21-12-2016

Originally Posted by davidmcn:
“You also need a time machine:

https://www.gov.uk/hmrc-internal-man...ual/sdltm29810”

True, my earlier post was originally framed in the context of the OP perhaps having not paid stamp duty on their pervious purchase but I realised the question was in regard to mortgages and not stamp duty.

When I edited my earlier post I forgot to add this - thanks.

2 of 2