Joint mortgages present an excellent opportunity for partners to combine their incomes to afford a mortgage for their dream home. However, if one of the partners isn’t a first-time homeowner, this can significantly affect the mortgage application as they won’t be eligible for first time buyer relief and other government schemes that support first time buyers in securing a home. That’s why many people ask, “If my partner is a first-time buyer, but I’m not. How would this affect our application?”.
If you want to understand how being a current or previous homeowner affects your joint mortgage with your first-time buyer partner, read below. We’ll break down all the considerations you need to keep in mind while applying for such a joint mortgage.
If you want to work with a specialist joint mortgage broker to obtain the perfect deal for your specific situation, then get in touch with When the Bank Says No today. That way, we can provide you with tailored advice and a plan to secure the best possible deal. We’ll also assist you in overcoming any issues you might encounter during the application process.
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Should Both Applicants For A Joint Mortgage Be First-Time Buyers?
When buying a home with your partner, both of you don’t need to be first-time buyers. It’s perfectly acceptable for one partner to be a previous or current homeowner. However, if one of the partners has owned property before, both partners lose their first-time buyer status.
In this case, you’ll miss out on some valuable benefits when you come to get a mortgage. These first-time buyer advantages include:
- Stamp duty relief (0%) for properties worth below £300,000 (applicable from 1 April 2025)
- 5% stamp duty on the portion of the property from £300,001 to £500,000 (there is no relief for properties over £500,000)
- Lower down payments
- Boost your borrowing power
- Governmental aid and incentives especially designed for first-time buyers
- More competitive mortgage rates
Do Couples Qualify As First-Time Buyers If One Partner Has Owned A Property Before?
For partners to be considered first-time buyers, neither should have previously owned a home. If either partner doesn’t meet this condition, both will be considered not to be first-time buyers. As a result, they aren’t eligible for most governmental incentives and buying schemes that offer advantages to first-time buyers.
Do We Qualify For Any Financial Help If My Partner Is A First-Time Buyer, But I’m Not?
If you’ve owned a residential property before, you won’t qualify for the many financial help options for first-time buyers. However, one of the options available to you is the shared ownership scheme that allows you to buy a share of the property if you can’t afford to buy it entirely. You just pay rent on the part you don’t own.
To be eligible for shared ownership, you need to show you can’t afford to buy a property without receiving aid. In addition, your annual income needs to be below £80,000, or £90,000 in London.
That said, it’s not recommended to go for shared ownership. That’s because it’s highly likely you won’t own the entire property in the future, negating your overall aim to become a homeowner.
Do You Pay Stamp Duty When One Partner Isn’t A First-Time Buyer?
Unfortunately, yes, you will be liable for stamp duty land tax (SDLT) if the property is over the set threshold – how much stamp duty you’ll pay will depend on the value of your property. You won’t be classed as a first-time buyer if you or your partner isn’t entering into buying a property for the first time. The only way to qualify for a stamp duty relief is when both borrowers are first-time buyers.
If one of the partners already owns or has previously purchased a property, you’ll need to pay stamp duty if the new property you are looking to buy has a value greater than £125,000.
Stamp duty land tax ranges between 2% and 12% of the property’s overall value if it is a primary residence. Below are the rates that apply from 1 April 2025. If you buy the new home to be your primary residence and are not classed as a first-time buyer, this is what you’ll pay:
| Proportion of Property Value | Stamp Duty Rate |
| Up to £125,000 | 0% |
| The next £125,000 (the portion from £125,001–£250,000) | 2% |
| The next £675,000 (the portion from £250,001–£925,000) | 5% |
| The next £575,000 (the portion from £925,001–£1.5 million) | 10% |
| The remaining amount (the portion over £1.5 million) | 12% |
This means if you were to buy a property for £345,000 the stamp duty you pay would be calculated as follows:
- 0% on the first £125,000 = £0
- 2% on the second £125,000 =£2,500
- 5% on the final £95,000 =£4,750
- Total SDLT = £7,250
If you buy the new property as a second home besides your current one, the stamp duty you’ll pay is effectively 5% higher than those for a primary residence:
| Proportion of Property Value | Stamp Duty Rate |
| Up to £125,000 | 5% |
| The next £125,000 (the portion from £125,001–£250,000) | 7% |
| The next £675,000 (the portion from £250,001–£925,000) | 10% |
| The next £575,000 (the portion from £925,001–£1.5 million) | 15% |
| The remaining amount (the portion over £1.5 million) | 17% |
What If Your Partner Applies As A First-Time Buyer For The Mortgage Alone?
You might be considering taking advantage of the first-time buyer’s stamp duty relief by making your partner the only applicant for the mortgage. However, this isn’t a good idea for multiple reasons:
- In this case, only your partner’s income would be taken into account. This will likely limit mortgage affordability because your partner’s income alone will be lower than the two of yours combined.
- If any dispute arises in the future between you and your partner, you could have a complicated and awkward scenario. That’s because you don’t legally own any equity in the home, even if you indirectly contributed to the repayment.
- If you and your partner plan to live together, you should consider upfront what you’ll do with your other property. You need to think about the tax considerations involved.
Given all these factors, relying solely on your partner’s application for the mortgage to receive the stamp duty relief might be a disadvantageous decision, especially if you are looking to boost your house fund.
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Can You Use A Lifetime ISA When One Of The Partners Isn’t A First-Time Buyer?
Fortunately, your partner can use their lifetime ISA to pay off the mortgage even if you aren’t a first-time buyer. Nevertheless, it’s not allowed for your partner to use a lifetime ISA to purchase a property worth over £450,000.
If they try to do so, they’ll be penalised by paying a fee of up to 25%. This fee represents the governmental contribution percentage for these accounts. As for you, you can’t use a lifetime ISA for this property purchase if you’re a homeowner.
What Does The Mortgage Application Look Like When One Partner Isn’t A First-Time Buyer?
Joint mortgages work much the same when one of the partners isn’t a first-time buyer and the process isn’t complicated. You will simply not be considered to be a first time buyer if your partner isn’t seeking to buy for the first time (or are already a homeowner).
Like any joint mortgage, you and your partner will apply and provide all the required documents. Then, the lender will check your income and that of your partner to determine the affordability of the mortgage.
Both of you must have a stable stream of income to be able to get a mortgage. In addition to your current finances, the lender will also look at the following:
Deposit Size
Lenders usually require a deposit of around 10% for a joint mortgage. Still, providing a higher deposit increases your chances of successfully securing the mortgage.
Employment Status
Most lenders prefer both partners to be employed as they consider it a sign of financial stability. However, there’s still a chance to secure the mortgage if one or both partners are self-employed.
Credit Record
The lender will review the credit records of both applicants. Ideally, neither you nor your partner should have a credit issue or a bad credit score.
If you or your partner have a bad credit score or any related issue, you can contact one of our bad credit mortgage specialists for help. They can help you overcome these problems and secure the best mortgage deal.
Living Expenses
The lender will consider the regular expenditure of you and your partner and your debt-to-income ratio. If you or your partner’s outgoings are relatively high compared to your income, this decreases your chances of securing the mortgage.
That said, if you’re self-employed or have any issues with the above mentioned factors, you can contact one of our financial advisors for help. Our joint mortgage experts have years of experience guiding partners in applying for and successfully obtaining the desired mortgage. They’ll help you boost your chances of getting a mortgage.
How Much Can You Borrow With A Joint Mortgage?
Lenders typically offer joint mortgages of approximately 4-5 times the combined annual income of the partners. This applies when your partner is a first-time buyer, but you’re not.
For example, if you earn £40,000 and your partner earns £45,000, you can expect a mortgage between £340,000 and £425,000.
The value of the home you can purchase is the sum of the mortgage amount and the deposit. You can use our mortgage calculator to calculate how much you can borrow. You only need to enter the combined income of you and your partner and the deposit amount into the calculator.
Joint Mortgages For Partners: FAQs
Who is eligible for first-time buyer benefits in the UK?
Partners are considered first-time buyers only if neither has ever owned property anywhere in the world. In addition, to qualify for first-time buyers’ benefits, the partners should plan to use the home for residency – it only applies to residential properties.
If you plan to use the house for investment purposes, you won’t be eligible for many first-time buyers’ benefits or governmental incentives that could save you money.
Can I be a first-time buyer twice?
Technically, once you’ve owned a home, you can’t be a first-time buyer again. This is true even if you had to sell your home due to any circumstances.
Still, some lenders may provide you with a few first-time buyer benefits if you haven’t had a mortgage within the past three years. In any case, you’ll still need to pay stamp duty because you’re technically no longer a first-time buyer.
Am I considered a first-time buyer if I inherited a property?
Although inheritance doesn’t involve a purchasing transaction, the government considers you a homeowner when you inherit a property. This means you will lose your first-time buyer status and be considered a second time buyer instead.
That way, you won’t qualify for first-time buyers’ benefits, including stamp duty relief. However, if your inherited property is purely commercial, you will maintain your first-time buyer status and advantages.
Can I just lie about being a first-time buyer?
Besides being unethical, lying about being a first-time buyer isn’t a good idea. That’s because, if you do so, you will undoubtedly lose your chance of obtaining the mortgage now and maybe in the future.
When you apply for any first-time buyers government scheme, you have to sign a declaration confirming that you’re a first-time buyer. The lender, in return, conducts some checks to verify your status.
It’s ridiculously easy for lenders to determine whether you’re a first-time buyer. They can do so by searching the land registry database for your name. They may also check your credit history to review whether you’ve had any previous mortgage or paid stamp duty.
You’ll be in trouble if the investigations reveal that you aren’t a first-time buyer. So, it isn’t worth the risk. It could even amount to a criminal offence, so lying about being a first-time buyer on an application is something you should absolutely avoid.
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First-Time Buyer With Second-Time Buyer Joint Mortgage Summary
If you or your partner are a current or previous homeowner, you both lose first-time buyer status when trying to enter a joint mortgage arrangement. This means you’ll lose all the benefits associated with first-time buyer status, and as a result, you may also need to pay stamp duty for your new home.
However, if your partner is a first-time buyer, they will still be able to use their lifetime ISA to put towards the mortgage.
If you make a mortgage application jointly, the application process will be similar to that of any other joint mortgage application – regardless of whether you’ve owned a property before and your partner hasn’t. The lender will likely offer you a mortgage value of 4–5 times the combined income of you and your partner.
If you want to secure the best joint mortgage deal when buying with a homeowner, then you can speak with one of our mortgage experts today. They’ll help you navigate the options and find the deal that suits your needs and objectives best.