What does it mean to be a First Time Buyer?
A first-time buyer is defined as an individual who has never owned a part or all of a residential property in the United Kingdom or anywhere else in the world, and who intends to occupy the property as their main residence.
Why is this important?
Being a First Time Buyer can make you eligible for a number of Government-backed schemes, such as Help to Buy. However, Generation Home is only able to lend to those purchasing using the Help to Buy Equity Loan scheme.
Being a First Time Buyer can also change your liability for taxes such as Stamp Duty Land Tax.
First time buyers paying £300,000 or less for a residential property will pay no Stamp Duty Land Tax (SDLT).
First time buyers paying between £300,000 and £500,000 will pay SDLT at 5% on the amount of the purchase price in excess of £300,000, a reduction of £5,000 compared to the amount of SDLT they would have previously paid.
A chain is where several property transactions are linked together. This could be, for example, because someone is selling their home and buying a new one.
Being a First Time Buyer means you will have no chain below you, as you won't have a property to sell. This can be really helpful in avoiding delays. However, it is worth being aware that the property you are buying may be part of a chain.