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Help to buy ISA for previous homeowner

Hi all,

I'm a 41 year-old father-of-3 divorcee currently saving to try and buy a house.

My ex-wife and I previously owned a house which she stayed in for several years after we split until she moved in with her new partner. At that point the house was sold and we each got some money from the little equity we had - we had debts up to our necks so very little remained but at least we're both now debt free!

It seems to me that all of the current government schemes are targeted to young, first-time buyers.

Is anyone aware of any schemes that could help someone in my situation? The Help to buy ISA isn't applicable I believe because I'm not a "first time buyer" and even the LISA is restricted to applicants under 40 years of age.

I know about the new build help to buy scheme that will help with up to 20% of the deposit but this is very limiting as it only applies to new builds (which in my experience are more expensive as the companies that build them know about the scheme and even market them based on the fact).

So, what can a middle-aged ex-homeowner do? Is there anything other than just continue to try and save and hope that I get a deposit together before I get too old to be able to get a sensible mortgage period?

Help and advice really appreciated.

Thank you.
DMP Mutal Support Thread No: 360
Proud to [STRIKE]be dealing[/STRIKE] have dealt with my debts

Comments

  • pramsay13
    pramsay13 Posts: 1,934
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    The schemes are very deliberately aimed at young first-time house buyers as traditionally they have found it difficult to get on the housing ladder.
    In theory, you could have used the equity from your previous house for a deposit on a new house but you used it for another purpose.
    Your options are to save using a normal ISA or perhaps one of the schemes that housebuilders offer.
  • DotNetter
    DotNetter Posts: 150
    First Post First Anniversary Combo Breaker
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    To clarify, I had to use the money from the previous sale to pay the debts off... Perhaps I wasn't clear enough.

    I couldn't have used the funds as a deposit because with the outstanding debt I would never had been able to get a mortgage (or afford the repayments)... I was on a debt management plan at the time.

    Regarding young people not being able to get on the ladder, I think it's equally difficult if not more so for my demographic which is why I was hoping someone knew of a scheme that I was unaware of.

    But thanks for your clarification that what I said was effectively correct.
    DMP Mutal Support Thread No: 360
    Proud to [STRIKE]be dealing[/STRIKE] have dealt with my debts
  • tori.k
    tori.k Posts: 3,592 Forumite
    The help to buy equity loan or the shared ownership schemes may be worth looking into.
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