Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Former MSE Sam M
    • By Former MSE Sam M 1st Dec 15, 3:23 PM
    • 238Posts
    • 159Thanks
    Former MSE Sam M
    Help to Buy ISA guide
    • #1
    • 1st Dec 15, 3:23 PM
    Help to Buy ISA guide 1st Dec 15 at 3:23 PM

    Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
Page 71
    • eskbanker
    • By eskbanker 29th Jul 17, 2:57 PM
    • 5,906 Posts
    • 5,876 Thanks
    eskbanker
    Thank you. So we could save for say 5 years at 150 a month, as kinglong as it's not over 200pm and ultimately doesn't exceed £12k?
    Originally posted by PollyWolly
    Yes, although £12K isn't an absolute limit for the balance, it's the maximum that a bonus will be paid on.
    • Nguyen60
    • By Nguyen60 1st Aug 17, 4:20 PM
    • 1 Posts
    • 0 Thanks
    Nguyen60
    Help to Buy bonus not paid out due to ISA agency Obsolete address data
    I am in the process of buying a flat for £280k and have a help to buy ISA with Barclays. On contract exchange I provided the closing statement for my ISA to the solicitor with balance of £2423.

    When my solicitor came to trying to draw down my 25% bonus on my closing statement, the ISA bonus agency did not recognise the address that I had purchased and therefore refused to pay my rightful bonus (which I clearly qualify for).

    I find this to be totally ludicrous as the reason behind this is clearly the agencies out of date geographical system / data. My solicitor is working to resolve this and bless them, they are not very tech savvy so if they input the address into the ISA Agency database and the system rejects the address then the solicitor goes in to "the computer says no mode". Bearing in mind the building is 8 years old and clearly the post office, utilities, the lender, everyone (but the government) recognises the address.

    Has anyone else had this issue? If so how do you resolve? I am not just going to walk away!
    Last edited by Nguyen60; 01-08-2017 at 4:45 PM.
    • Goldmember
    • By Goldmember 2nd Aug 17, 9:43 PM
    • 3 Posts
    • 0 Thanks
    Goldmember
    Junior ISA to help to buy ISA
    My 17yr old son turns 18 next month and has nearly 7k in a Junior ISA, primarily for a deposit for a house when he needs it. He is also starting an apprenticeship in September and I am hoping he is going to be saving £50 a wk minimum for at least the 2yr duration of his apprenticeship.
    Is a help to buy ISA the right way to go? Which one would be better for these circumstances? And would it be better if we close down his Junior ISA?
    Not much idea on ISA's as you can probably guess.
    It seems a bit if a minefield with so many different products on offer.
    Thanks in advance for any advice
    • PollyWolly
    • By PollyWolly 3rd Aug 17, 11:07 PM
    • 18 Posts
    • 11 Thanks
    PollyWolly
    I'm looking to start this this week. Going by recommendations in here I'm looking at Barclays who offer 2.27%. I'm wondering how is the interest worked with this.
    £1200 to start for first month.
    200 x next 11 month = £2200
    £3400 After the first 12 month
    £5800 after 24 month
    £8200 after 36 month
    £10,600 after 48 month etc etc.

    Does it mean that if the rate stays the same and I pay the full £200 each month, then instead of my £10600 I would actually have an extra £500 or so on top? (I don't know how interest works on this)
    Does this mean then that the 25% added at the end, is that 25% of £10600 (£2650) so £13250, or, if it was an extra £500, would it then be £10600+£500=£11100 +25% (£2775) = £13875.
    • eskbanker
    • By eskbanker 3rd Aug 17, 11:46 PM
    • 5,906 Posts
    • 5,876 Thanks
    eskbanker
    I'm looking to start this this week. Going by recommendations in here I'm looking at Barclays who offer 2.27%. I'm wondering how is the interest worked with this.
    £1200 to start for first month.
    200 x next 11 month = £2200
    £3400 After the first 12 month
    £5800 after 24 month
    £8200 after 36 month
    £10,600 after 48 month etc etc.

    Does it mean that if the rate stays the same and I pay the full £200 each month, then instead of my £10600 I would actually have an extra £500 or so on top? (I don't know how interest works on this)
    Does this mean then that the 25% added at the end, is that 25% of £10600 (£2650) so £13250, or, if it was an extra £500, would it then be £10600+£500=£11100 +25% (£2775) = £13875.
    Originally posted by PollyWolly
    The bonus is payable on the interest-inclusive total, as per https://www.helptobuy.gov.uk/help-to-buy-isa/faq/#5e9a24ea-e1f7-648f-8ce9-ff0000ad17aa:
    Will my interest on my savings count towards my government bonus?
    Yes. Your government bonus will be calculated based on the amount of money you have in your account when you close it. This includes both the money you have saved, and any interest you have earned on that money. The maximum government bonus is £3,000.
    • Goldmember
    • By Goldmember 8th Aug 17, 12:32 AM
    • 3 Posts
    • 0 Thanks
    Goldmember
    Hi, can anybody give me a snippet of advice on my above post please??

    Thankyou
    • eskbanker
    • By eskbanker 8th Aug 17, 11:33 AM
    • 5,906 Posts
    • 5,876 Thanks
    eskbanker
    My 17yr old son turns 18 next month and has nearly 7k in a Junior ISA, primarily for a deposit for a house when he needs it. He is also starting an apprenticeship in September and I am hoping he is going to be saving £50 a wk minimum for at least the 2yr duration of his apprenticeship.
    Is a help to buy ISA the right way to go? Which one would be better for these circumstances? And would it be better if we close down his Junior ISA?
    Originally posted by Goldmember
    For contributions going forward he has the choice between a Help to Buy ISA or a Lifetime ISA - the latter is the newer product and is generally a better bet than HTB, provided he's not buying a property within the next year.

    http://www.moneysavingexpert.com/savings/lifetime-ISAs includes a table comparing them, as well as info about providers, although as of now there is only one who supports cash saving rather than investment, namely Skipton BS. Their interest rate of 0.5% is poor, but this is trumped by the 25% government bonus (also payable with a HTB ISA).

    http://www.moneysavingexpert.com/savings/which-saving-account is a more general article about what to do with the £7K in the junior ISA, which will convert to a standard cash ISA on his birthday.

    Personally I'd open one or more regular saver accounts for the monthly contributions and fill up the LISA to the £4K annual allowance, feeding from these and the junior ISA proceeds.
    • Goldmember
    • By Goldmember 9th Aug 17, 2:05 AM
    • 3 Posts
    • 0 Thanks
    Goldmember
    Thanks for your reply.

    I see that you can put £1200 in the HTB in the 1st month.

    Is there a limit to the lump sums you can put into a LISA?

    Could he transfer his Junior ISA when he is 18 to another ISA and not put any contributions into it aswell as have a HTB/LISA, or can he not have another ISA aswell as the HTB/LISA?

    I don't think using his ISA money to open new bank accounts with a good interest rate is a good idea in his case, as hes not the best with saving/handling money, just yet! so maybe transferring it to another ISA might be better for him.

    Cheers
    • eskbanker
    • By eskbanker 10th Aug 17, 12:00 AM
    • 5,906 Posts
    • 5,876 Thanks
    eskbanker
    Is there a limit to the lump sums you can put into a LISA?
    Originally posted by Goldmember
    The LISA limit is an annual one (£4K) unlike the HTB's monthly cap, so all £4K could be paid in in one transaction should he wish to do so.

    Could he transfer his Junior ISA when he is 18 to another ISA and not put any contributions into it aswell as have a HTB/LISA, or can he not have another ISA aswell as the HTB/LISA?
    Originally posted by Goldmember
    He can have multiple ISAs, the rule is that you can only pay new money into one of each type in any given tax year, LISA being a different type from Cash/HTB.

    I don't think using his ISA money to open new bank accounts with a good interest rate is a good idea in his case, as hes not the best with saving/handling money, just yet! so maybe transferring it to another ISA might be better for him.
    Originally posted by Goldmember
    As long as you bear in mind that at 18 it's his money to decide what to do with....
    • SarahLouiseHogg
    • By SarahLouiseHogg 6th Sep 17, 12:36 PM
    • 2 Posts
    • 0 Thanks
    SarahLouiseHogg
    Self Build Help to Buy ISA
    Hi,

    I wondered if you could offer any advice on using the help to buy ISA for a new build mortgage? My brother is building his first home and everyone is telling him 'they don't think you can use the help to buy ISA for a self build' which is frustrating as I don't think this is the case. Any pointers on where to find helpful info or which lenders offer it would be great? Thanks xx
    • eskbanker
    • By eskbanker 6th Sep 17, 1:17 PM
    • 5,906 Posts
    • 5,876 Thanks
    eskbanker
    Hi,

    I wondered if you could offer any advice on using the help to buy ISA for a new build mortgage? My brother is building his first home and everyone is telling him 'they don't think you can use the help to buy ISA for a self build' which is frustrating as I don't think this is the case. Any pointers on where to find helpful info or which lenders offer it would be great? Thanks xx
    Originally posted by SarahLouiseHogg
    The HTB ISA bonus can be used for the acquisition of the land but not the construction phase, as per https://www.helptobuy.gov.uk/help-to-buy-isa/faq/:
    Can I use a Help to Buy: ISA bonus to buy land to build my first property on?
    Assuming that you meet all the other eligibility criteria, you will be able to use the government bonus towards the purchase of the land for a self-build property which is the only home you will own, be where you intend to live and be purchased with a mortgage. The land must be in the UK, have a price of £250,000 or less (with a higher price limit of £450,000 in London).

    Can I use the Help to Buy: ISA bonus to fund the construction of a home on land I own?
    No. You cannot use a government bonus to fund the construction of a home on land you already own.
    • Pringleton
    • By Pringleton 6th Sep 17, 6:51 PM
    • 6 Posts
    • 1 Thanks
    Pringleton
    Hi, apologies if this is answered elsewhere but I couldn't find it!


    Can I use the ISA bonus if I'm an outright cash buyer? Every mention so far has been in conjunction with a mortgage
    • eskbanker
    • By eskbanker 6th Sep 17, 7:17 PM
    • 5,906 Posts
    • 5,876 Thanks
    eskbanker
    Hi, apologies if this is answered elsewhere but I couldn't find it!


    Can I use the ISA bonus if I'm an outright cash buyer? Every mention so far has been in conjunction with a mortgage
    Originally posted by Pringleton
    Answered in the FAQ linked from the post before yours:
    Can I buy a property without a mortgage and be eligible for a government bonus?
    No. The property you are buying must be mortgaged in order to be eligible for the government bonus.
    ....the thinking presumably being that if you're in a position to buy your first place as a cash-only purchase then you clearly aren't in need of taxpayer assistance to get onto the property ladder!
    • User1312
    • By User1312 8th Sep 17, 12:54 PM
    • 98 Posts
    • 20 Thanks
    User1312
    Can someone please help me? My partner's had his HTB bonus refused!

    We're completing on Monday. Last week we went into Barclays to close our HTB ISA's, me and partner both did it with the same clerk at the same time - closed our accounts and in the process the remaining balance was transferred to other accounts.

    I received my closing statement on Tuesday, which shows my closing balance and my bonus application went through via solicitor. My partner received his statement yesterday and the bonus has been rejected. The bonus management people have said:

    "The attached document does not confirm that the account has been closed. It also states that the customer has withdrawn the funds prior to closure, leaving a balance of 0."

    I've since checked and there is a difference between his statement and mine - his doesn't say 'closing balance £xxx' like mine does.

    I'm completely panicking now because that's £1000 of funds we were expecting.

    Our solicitor has asked for this extra £1000 today because he can't complete on Monday using the bonus funds, and he said 'we'll have to sort it {the bonus issue} out after completion'

    We gave exactly the same instructions to the clerk, and if he did mine correct why hasn't he done my partners? The only difference between our accounts is that I still have a savings account with Barclays, and my partner was closing his last account with Barclays, but the clerk didn't say we had to do anything differently.

    Can this be sorted by speaking to Barclays? And can it also be sorted after completion or will we have missed the boat to be issued the bonus anyway??
    • eskbanker
    • By eskbanker 8th Sep 17, 1:25 PM
    • 5,906 Posts
    • 5,876 Thanks
    eskbanker
    Can this be sorted by speaking to Barclays?
    Originally posted by User1312
    If Barclays have basically processed identical transactions in different ways and jeopardised your HTB ISA bonus in doing so then I would indeed raise it with them as a matter of urgency and insist on the correct statement being reissued today.

    And can it also be sorted after completion or will we have missed the boat to be issued the bonus anyway??
    Originally posted by User1312
    If your solicitor has said 'we'll have to sort it {the bonus issue} out after completion' then you can either question him further on exactly what he means by that or trust him. If he gets a revised statement from Barclays today then I'd have thought there's a chance that the bonus application can be resubmitted before completion (even if the actual bonus money comes through after completion).

    It could all get messy as to whose fault this is - it sounds like Barclays made the initial error but neither you/partner nor the solicitor noticed the lack of confirmation of account closure on the statement prior to submission, but obviously the key thing at this stage is to do whatever you can to get things back on track today....
    • User1312
    • By User1312 8th Sep 17, 1:35 PM
    • 98 Posts
    • 20 Thanks
    User1312
    Thank you. We only received the statement yesterday evening, and scanned it to our solicitor straight away, which he picked up this morning and applied.

    I asked him "will they say it's too late if we try and sort it after completion" and he said no. But I'm not sure he's done too many of these before so I wondered if anyone else had come across the same issue and have, in extenuating circumstances, been issued the bonus after completion.
    • eskbanker
    • By eskbanker 8th Sep 17, 2:35 PM
    • 5,906 Posts
    • 5,876 Thanks
    eskbanker
    To be honest your solicitor should have left more time for this anyway - the ISA manager (Barclays) has up to seven business days to provide the closing documents but even after that the bonus administrator has another week to actually stump up the cash after the application is made, as covered in clause 8.3 of the conveyancer guidelines:
    The Administrator will process a validated Bonus Request and make the payment to the Eligible Conveyancer’s Client Account within 5 Business Days. A Bonus Request must therefore be made at least 5 Business Days before completion of a property purchase.
    However, there is an expedited process that allows a conveyancer to claim a bonus without the formal closing statement, so I'd suggest that you read up on clause 9.1 of those conveyancer guidelines and discuss urgently with your solicitor....
    • Lady712
    • By Lady712 8th Sep 17, 4:14 PM
    • 9 Posts
    • 0 Thanks
    Lady712
    London boroughs
    Hi,
    Has any one tried to get their bonus on their HTB living outside of the main london boroughs, as my solicitor has just tried and has been told that the borough i am moving to (upminster) is not a london borough even though it comes under the london borough of havering.

    Thanks
    • eskbanker
    • By eskbanker 8th Sep 17, 5:03 PM
    • 5,906 Posts
    • 5,876 Thanks
    eskbanker
    Has any one tried to get their bonus on their HTB living outside of the main london boroughs, as my solicitor has just tried and has been told that the borough i am moving to (upminster) is not a london borough even though it comes under the london borough of havering.
    Originally posted by Lady712
    HTB ISA bonuses can be used anywhere in the UK, not just London, but the significance of London is that maximum qualifying property value for HTB is £450K rather than £250K elsewhere.

    So, I'm assuming that the reason for your question is that your chosen property is valued between £250K and £450K?

    As far as I can see Upminster isn't a borough as such, but is a town within the borough of Havering, which is indeed one of those qualifying as within London for HTB purposes (see Schedule 9 at the end of the scheme rules) so you should qualify. Is the specific address you're looking at definitely within the Havering boundary?
    • Lady712
    • By Lady712 8th Sep 17, 5:26 PM
    • 9 Posts
    • 0 Thanks
    Lady712
    Hi eskbanker,

    You are correct, the property in question is between £250k-450K. yes upminster is definitely in the borough of Havering.

    Thanks for your help
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,375Posts Today

6,292Users online

Martin's Twitter