"First time buyer only" mortgages - How would they know?
Discussion
A colleague lost his old job a couple of years ago and had to move back in with his parents. He was lucky enough to be able to sell his house before getting into difficulties and is now back in employment.
He has been looking at mortgages but the best deals seem to be for "first time buyers only" - I said to him, how on earth will they know that you've had a house and mortgage before?
He has been looking at mortgages but the best deals seem to be for "first time buyers only" - I said to him, how on earth will they know that you've had a house and mortgage before?
The basic? The requirement of good faith (and not attempting to obtain money by deception or commit mortgage fraud) contained in the terms in the mortgage application form.
The more complex; when you buy a property, irrespective of price, a Stamp Duty Land Tax form has to be completed by your solicitor, even if you fall in the 0% stamp duty bracket. In the interests of stamping out fraud, there are several systems lenders use which can cross reference these.
There are other methods lenders use involving information from combined sources, such as tracking the electoral roll and of course, basic credit checking will show any mortgage application made (assuming it proceeded to a credit check- or a soft footprint for a verification check as opposed to a full credit search), as well of course as outstanding loans or those closed within the last 6 years.
Lenders also compare data made in applications- http://www.nhunter.co.uk/
Fraud is bad. It's best not to be embarrased by trying it.
The more complex; when you buy a property, irrespective of price, a Stamp Duty Land Tax form has to be completed by your solicitor, even if you fall in the 0% stamp duty bracket. In the interests of stamping out fraud, there are several systems lenders use which can cross reference these.
There are other methods lenders use involving information from combined sources, such as tracking the electoral roll and of course, basic credit checking will show any mortgage application made (assuming it proceeded to a credit check- or a soft footprint for a verification check as opposed to a full credit search), as well of course as outstanding loans or those closed within the last 6 years.
Lenders also compare data made in applications- http://www.nhunter.co.uk/
Fraud is bad. It's best not to be embarrased by trying it.
I know this is an old one, but your colleague might want to check what the lenders definition of FTB is.
For some lenders its just that, a first time buyer who has never owned property before, for others FTB can be someone who has not had a property for a given amount of time.
Of course this is in no way linked to the definition of an FTB under theSDLT exemption. Your colleague would be extremely foolish to try and bilk HRMC
For some lenders its just that, a first time buyer who has never owned property before, for others FTB can be someone who has not had a property for a given amount of time.
Of course this is in no way linked to the definition of an FTB under theSDLT exemption. Your colleague would be extremely foolish to try and bilk HRMC
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