Am I a first time buyer?

BarraOG

I have never had a loan in Ireland. Had a home mortgage in Sweden but cleared it in 2017. Am I a first time buyer with respect to getting a loan in Ireland? My wife can't get mortgage protection or Rejection letters and none of the banks we've talked to will allow us to draw down as a consequence. It might help our situation if we fall under the first time category, as I could investigate the idea of getting the mortgage in my name only. I dont want to write down that I am a first time buyer on an application and then have an underwriter reject me at a later stage.

BrokenArrows

Technically no, but actually yes.

They have no means to find out about your previous property.

BarraOG

I found this definition, says nothing about Ireland so technically I'm not:

A first time buyer is defined as a borrower to whom no housing loan has ever before been advanced.

Where the borrower under a housing loan is more than one person and one or more of those

persons has previously been advanced a housing loan, none of those persons is a first-time buyer.

https://www.centralbank.ie/docs/default-source/news-and-media/press-releases/2017/faq---new-regulations-on-residential-mortgage-lending.pdf?sfvrsn=1360d41d_2

elperello

This link says owning a residential property in Ireland or abroad would exclude you.

https://covermore.ie/what-is-a-first-time-buyer/#:~:text=Who%20has%20not%20on%20any,in%20Ireland%20or%20abroad)%2C%20and

Henry Ford III

Ask your lender. Their opinion is the only one that counts.

Mrs OBumble

If you're married or cohabiting, you cannot ger a mortgage in your name only.

kippy

https://www.boards.ie/discussion/comment/123529466#Comment_123529466

Has that changed recently. I was under the impression that any person in a cohabiting arrangement may get a mortgage on their own, under their own steam, so to speak.

Dublin Calling

The official test (years ago) to begin a first time buyer was to go to Revenue and get them to stamp a document saying you never got mortgage interest relief.

I still remember queuing up to get it done in O'Connell Street, back in the day.

lollsangel

https://www.boards.ie/discussion/comment/123529466#Comment_123529466

One of the girls working with me got a mortgage in just her name, she is co-habiting with her partner and their child

Dublin Calling

https://www.boards.ie/discussion/comment/123529466#Comment_123529466

What makes you think this?

BarraOG

https://www.boards.ie/discussion/comment/123529429#Comment_123529429

I dont think that's right. The quote I provided is from the Central Bank: "no housing loan has ever before been advanced". Either way I dont qualify, although on the Central Bank website it states that Banks can loan more than 3.5, but only to a limited number of customers.

Dublin Calling

https://www.boards.ie/discussion/comment/123529491#Comment_123529491

What would correspond with my post of getting the document stamped by Revenue, Stating they had never given me mortgage interest relief.

BarraOG

https://www.boards.ie/discussion/comment/123529501#Comment_123529501

If I remember correctly you are asked now to declare on the mortgage application if you are a FTB.

Mrs OBumble

https://www.boards.ie/discussion/comment/123529486#Comment_123529486

Most lenders have policies that require both spouses to be included on the application if you're in a relationship. because the legal rights that a cohabitant has could impede a bank's ability to access the security:

https://www.citizensinformation.ie/en/birth-family-relationships/cohabiting-couples/property-rights-cohabiting-couples/

Larbre34

https://www.boards.ie/discussion/comment/123529440#Comment_123529440

Jesus, don't do that.

You are a first time buyer until someone comes up with the evidence that you are not. And good luck to them with that.

Peregrinus

Under the relevant regulations, a "first-time borrower" is "a borrower to whom no housing loan has ever before been advanced". If you drill down into the definitions, a "housing loan" is advanced by a "lender"; a "lender" is defined as a "regulated financial services provider", and "regulated financial services provider" is a financial services provider whose business is regulated by the Central Bank of Ireland or by a similar authority in another EEA country.

Sweden is an EEA country, so BarryOG is not a first-time borrower.

But.

The regulations concerned are not directed at borrowers, and don't say how much borrowers can borrrow. They're aimed at lenders, and they say how much lenders can lend. All the obligations under the regulations are imposed on lenders.

Which means that, if an Irish lender treates BarraOG as a first-time borrower, BarraOG does nothing wrong, improper, unlawful, etc (assuming he answered the lender's questions fully and truthfully, of course) and he hasn't breached any regulations . The lender may be at fault for not having asked BarryOG the right questions.

In other words, so loing as BarraOG is truthful and accurate in the information he supplies in connection with his mortgage application, if he is treated as a first-time borrower when he isn't that's not BarraOG's problem; it's the lender's problem.

Get Real

https://www.boards.ie/discussion/comment/123529491#Comment_123529491

"No housing loan has ever before been advanced". And one has before been advanced.

I'm not knocking, hope you can be classed as a FTB as that's the logical preference.

But it doesn't say "No housing loan has ever before been advanced in Ireland".

Their definition isn't so clear cut, and it could also include a housing loan in another EU country for example.

Whatever questions the bank ask is up to them though. I'd advise answering truthfully if they do ask. They'll decide how to treat you. Others may choose not to disclose that though.

wassie

https://www.boards.ie/discussion/comment/123529696#Comment_123529696

The main banks wont, but several non-bank lenders will lend such as Haven and Nua Mortgages. (Finance Ireland did also but withdrew from from residential mortgages).

If accepted, they will require a Deed of Confirmation and spousal consent where the mortgaged property is the family home/shared home, and the spouse is not a joint owner. In short, this confirms the priority position of the mortgage to the bank.