First Time Buyers Isa

[johnny37]

In order to qualify applicants must have not previously held a mortgage. Bearing in mind the opportunity for fraud, is there any way this rule can be overidden?

[twix123]

I presume that you are talking about mortgages for first time buyers not ISA's!

I'm sure that the Mortgage Broker / Lender will make the necessary credit checks on the applicants, including whether they have had any previous mortgages. Naturally this would not cover a previous property bought for cash, but then would they need a mortgage for their next purchase?

In answer to your question, the rules probably can't be broken, and there would probably be a clause in the small print allowing the loan to be called in if the terms of the loan agreement were found to be contravened.

[johnny37]

Not helpful, twix. You got the correct anser (NO) I think but I need to know if there are any exceptions. A new ISA, starts today I think. Enables FTBs to save. Govt adds 25% to whatever the saver puts in. At the end of the period the saver gets a voucher to give to the mortgage provider.

[Dogsbody2]

Actually I found twix's answer incredibly helpful; it isn't the role of responders to find avoidance strategies, and my answer would have been the same.
We all know what has happened to those who individuals who invested in film investment companies (and were advised to, by their accountants) - they have rather large personal tax liabilities to settle now.

[fiction-factory]

It's the Help to Buy ISA

http://www.moneysavingexpert.com/savings/help-to-buy-ISA

[fiction-factory]

From the link:.

Who can open a Help to Buy ISA?

You need to be a first-time buyer (ie, never having owned a home before), and just as with a cash ISA, account holders must be aged 16 or over....
You can still get one of these ISAs even if you're buying with someone who isn't a first-time buyer, though they won't be able to open one of these ISAs.

So if you are not eligible on your own you could buy with someoen who is a first time buyer.

I fear there will be some fraud/dodgy dealings with these but maybe the limits on the amount you can get from the government and the restrictions to eligible house prices will stop investors defrauding on a large scale

[johnny37]

it is not my intention to commit fraud, as i said when opening the thread. There may be cases where someone has previously held a mortgage and got out of it for whatever reason (divorce, etc) and even saddled with a large debt which they had opted to come out of rather than take on more debt. It appears these people are disqualified forever. Ive no doubt that there are already wealthy mortgage free pensioners setting up these plans for their children perfectly legally. I was only asking if there were any other (legal) ways of doing this.

[fiction-factory]

I wasn't suggesting you commit any fraud, johnny.
I was saying how you could get round it legally which is what you asked and then said that the there will be some people who abuse this scheme and sadly it will probably help those who can afford it it than those it is intended to help.
The Martin Lewis article is a good start. I recall him saying on the radio that the rule seemed to be an absolute rule about one of those on the application being a first time buyer. I am not aware of any exceptions.