Everybody knows the loopholes and technicalities that come with certain words… they’re not always as obvious as they seem. In this blog, we’re here to make you feel less silly about asking ‘Who is considered a first-time home buyer?’ and let you in on the surprisingly sneaky technicalities behind the words.
Unlike most financial questions, who is considered a first-time home buyer isn’t completely black and white- there’s a few different shades of grey hidden in the question. Not only can a first time buyer status vary from lender to lender but you also have to take into account the governmental requirements. The government has its own rules as there are certain schemes put in place for first-time buyers and to qualify for them, you’ll have to meet certain criteria.
What is the technical definition for who is considered a first-time home buyer?
- a person buying a house or flat who has not previously owned a home and therefore has no property to sell.
The question seems simple at first… if you have had a home before, you’re not a first time buyer… if you have not had a home before you are a first time buyer, right?!
This question becomes less apparent the more you think about it. Here are some examples:
- If a couple decides they want to take part in a first time buyer scheme but one person has had a home previously and the other person hasn’t.
- If you have previously owned a shop, not a home
- If you’ve previously owned a home abroad
- If you’ve inherited a property
So, the oxford dictionary explanation doesn’t explain it in the fullest way- to be pedantic!
Who is considered a first time home buyer?
If you are a single person who has never bought a home before, or you and your partner have both never bought a home before, you will be classed as a first time buyer.
If you have owned commercial property in the past but never owned a home, you’re in luck. You are still classed as a first time buyer. The only instance that you are not a first time buyer in a similar situation is if you owned a commercial property with a living space attached to it.
Who doesn’t qualify as a first time buyer?
Anybody who has owned a home before will not be classed as a first time buyer, so this includes people who have inherited a home. This also applies to people who have had a home previously bought for them. In this case, the ‘buyer’ part of the sentence doesn’t match the actual meaning, which is annoying. Nonetheless, sorry homeowners, you’re out of the equation.
If you’re in a couple where one of you has owned a home before, unfortunately, you will not qualify as a first time buyer.
If you intend to buy-to-let, you also will not qualify as a first time buyer. Even if you have never owned a home before, you will not be able to use any government schemes if you intend to rent the property out.
Want to know more?
Thank you for reading our blog ‘What is considered a first time home buyer?’. Our helpful mortgage specialists at Weystone Financial will be able to help you with all of the questions and queries you may have. Take a look at our website today and call us!