Can I Get a First Time Buyer Mortgage on Inherited Property?
Answered on 19 September 2024 by Nicholas Mendes
I inherited my fathers house. I've never had a mortgage. Would I be still eligible to get a first time buyer mortgage to release a lump sum?
As you own a property now, you will be deemed a homeowner and the process of raising money of this property will technically be via a remortgage with capital release. That is not necessarily a bad thing and potentially our consultants can find you a deal with free valuation and free legals.
Whether you can get a first time buyer mortgage on an inherited property, and the specific perks that come with a first time buyer mortgage deal, depends on several factors, including the specific criteria of the lender and your individual circumstances.
Here are some points to consider:
- Definition of a first-time buyer - lenders may have different definitions of a first time buyer. Some define it strictly as someone who has never owned a property before, while others may consider someone who has not owned a property in a certain number of years to be a first time buyer. If you meet the lender's definition, you may be eligible for a first time buyer mortgage
- Ownership of the inherited property - if you have inherited a property but have never owned a property before, some lenders may consider you a first time buyer and offer you a first time buyer mortgage. However, if you have already owned a property, even if it was inherited, you may not qualify as a first time buyer according to some lenders' criteria
- Financial circumstances - lenders will assess your financial circumstances, including your income, credit history, and affordability, when considering your mortgage application. Even if you meet the criteria to be considered a first time buyer, you will still need to demonstrate that you can afford the mortgage repayments based on your financial situation
- Property type - some lenders may have restrictions on the type of property that qualifies for a first time buyer mortgage. For example, they may only offer first-time buyer mortgages on properties that are intended to be your main residence and not on inherited properties that you plan to rent out or use as a second home
- Lender policies - it's essential to check with individual lenders to understand their policies regarding first time buyer mortgages and inherited properties. Some lenders may be more flexible than others and may offer specific mortgage products tailored to your situation.
Getting a First Time Buyer Mortgage on an Inherited Property: Next Steps
Before applying for a first-time buyer mortgage on an inherited property, it's advisable to research and compare mortgage options from different lenders to find the best fit for your needs.
To discuss your particular requirements, speak to one of our independent mortgage advisers on 0330 433 2927.
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