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  • 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 73
    • eskbanker
    • By eskbanker 24th Oct 17, 3:58 PM
    • 5,903 Posts
    • 5,869 Thanks
    eskbanker
    Surely if you have £8K in the HTB ISAs, which would be enhanced to £10K with the government bonus if used correctly, it would be worth putting down all £10K towards the property, and reduce the size of your mortgage accordingly by the £3,500 difference, otherwise you're essentially missing out on free money?

    The bonus isn't "returned to [you] after completion", it's provided immediately before completion in order to be used towards the property value, although anecdotally some conveyancers are willing to blur this a bit in practice, so worth checking with yours what your options are.
    • Akountourides
    • By Akountourides 31st Oct 17, 1:47 PM
    • 1 Posts
    • 0 Thanks
    Akountourides
    A few quick questions
    Having read the Help to Buy ISA guide I have a few questions that I hope someone can answer

    1) If me and my friend are both first time buyers and we open two separate Help to Buy ISA's, from what I gathered we are both entitled to the government bonus and can use it together on the same property? However, I was less clear on weather this still means we have a £450k limit (buying in London) or because we have joined two ISA's together we can then buy up to £900k (double)?

    2) I have a stocks and shares ISA (opened a couple of weeks ago). The article mentioned Cash ISA's and that you are allowed have both, via a split ISA. Therefore, can I have a help to buy ISA and a Stocks and Shares ISA?

    3) If I decide to withdraw the cash, having not used it for the purchase of my first home then I am still entitled to the interest and no penalty on withdrawal?

    4) Finally, if I use it to purchase a house and decide 6 months later or however long later I know longer want to live there and to move somewhere else (parents, partner etc). I can either sell the property or rent it out. How will the government decide if they want their money back from that?

    Thanks
    • Rich2808
    • By Rich2808 31st Oct 17, 4:49 PM
    • 531 Posts
    • 417 Thanks
    Rich2808
    Having read the Help to Buy ISA guide I have a few questions that I hope someone can answer

    1) If me and my friend are both first time buyers and we open two separate Help to Buy ISA's, from what I gathered we are both entitled to the government bonus and can use it together on the same property? However, I was less clear on weather this still means we have a £450k limit (buying in London) or because we have joined two ISA's together we can then buy up to £900k (double)?

    2) I have a stocks and shares ISA (opened a couple of weeks ago). The article mentioned Cash ISA's and that you are allowed have both, via a split ISA. Therefore, can I have a help to buy ISA and a Stocks and Shares ISA?

    3) If I decide to withdraw the cash, having not used it for the purchase of my first home then I am still entitled to the interest and no penalty on withdrawal?

    4) Finally, if I use it to purchase a house and decide 6 months later or however long later I know longer want to live there and to move somewhere else (parents, partner etc). I can either sell the property or rent it out. How will the government decide if they want their money back from that?

    Thanks
    Originally posted by Akountourides
    Here are answers to the questions you asked

    1 No - the limit is £450k per property in London and £250k outside. It doesn't multiply up if two people buy a £900k property or 5 buy a £2.25m property.
    2 Yes - you can have a stocks and share isa and a help to buy isa - the latter is a cash isa and an innovative finance (peer to peer lender isa too). This is not a split isa though - that is where you can open and invest in multiple cash isas (incl one HTB isa) with certain providers e.g. Nationwide, Natwest/RBS/Aldermore.
    3 Yes - you can close the HTB isa any time and keep the interest earned - even if you never buy a house or claim the bonus. But once you buy your first home you should close the HTB isa (whether you claim a bonus or not) as you are no longer eligible to hold one.
    4 No - the government will not claim back the bonus. As long as you bought it to live in as your main home on day one it doesn't matter that six months later you decide to sell it or rent it out.
    • Saving Soldier
    • By Saving Soldier 2nd Nov 17, 6:25 PM
    • 2 Posts
    • 1 Thanks
    Saving Soldier
    Hi all,

    Looking for some help/advice please...

    I switched bank accounts to Santander 123 last year and everything was fine. I was getting decent cashback and 3% interest. Then they cut the interest to 1.5% and my cashback fell due to moving into parents and not paying as many bills DD.

    Anyway, I started a Help To Buy ISA (with Santander) earlier this year and now have £2000 in the account.

    Having seen the many bank accounts with better offers - am I right in thinking - if I switch my current account to another bank, I can keep my Santander Help To Buy ISA, but there will be slightly less interest on it due to me not having a 123 account any more?

    Also, am I allowed to switch my Santander Help To Buy ISA to another bank at any time? Or will it prevent me from getting the government bonus in future if I switch within a year of opening it?


    Many thanks if you can help!
    • Alexland
    • By Alexland 2nd Nov 17, 7:22 PM
    • 780 Posts
    • 475 Thanks
    Alexland
    Hi,

    Reading the terms of the Santander HTB ISA it says you will get the higher rate if you are a 123 or Select (we are both) account customer at the point of account opening.

    The terms are silent on what happens if you stop being a qualifying customer. Why not ask them to clarify by secure message and then you will have an answer in writing?

    http://www.santander.co.uk/uk/isas/help-to-buy-isa

    You are free to transfer to another provider and it will not affect the opening date of the HTB ISA - you are just moving it around.

    Alex
    • Rich2808
    • By Rich2808 2nd Nov 17, 7:57 PM
    • 531 Posts
    • 417 Thanks
    Rich2808
    Hi,

    Reading the terms of the Santander HTB ISA it says you will get the higher rate if you are a 123 or Select (we are both) account customer at the point of account opening.

    The terms are silent on what happens if you stop being a qualifying customer. Why not ask them to clarify by secure message and then you will have an answer in writing?

    http://www.santander.co.uk/uk/isas/help-to-buy-isa

    You are free to transfer to another provider and it will not affect the opening date of the HTB ISA - you are just moving it around.

    Alex
    Originally posted by Alexland
    Of course the 'higher' Santander rate for having a 123 account is 2%.

    Barclays and Nationwide match or exceed this - and some local building societies (if you are in their area) pay even more.

    https://www.moneysavingexpert.com/savings/help-to-buy-ISA
    • Saving Soldier
    • By Saving Soldier 2nd Nov 17, 8:03 PM
    • 2 Posts
    • 1 Thanks
    Saving Soldier
    Hi,

    Reading the terms of the Santander HTB ISA it says you will get the higher rate if you are a 123 or Select (we are both) account customer at the point of account opening.

    The terms are silent on what happens if you stop being a qualifying customer. Why not ask them to clarify by secure message and then you will have an answer in writing?

    You are free to transfer to another provider and it will not affect the opening date of the HTB ISA - you are just moving it around.

    Alex
    Originally posted by Alexland
    Thanks for the help, I think it's time to switch!
    • Curls2208
    • By Curls2208 3rd Nov 17, 5:08 AM
    • 22 Posts
    • 7 Thanks
    Curls2208
    Hi all,

    So I was wondering if anyone else took out the Halifax H2B on 1st Dec 2015. It's been brilliant with a 4 % interest rate at first and only dropping to 3.5 % last year. I'm just wondering if anyone has heard if halifax plan to change the rate this december?

    I'd imagine the 3.5% was only for existing members by the way, as I've not seen it advertised anywhere.

    Got almost 6 K saved up in it now, it's been such a good scheme.
    • orcadian
    • By orcadian 5th Nov 17, 10:46 AM
    • 38 Posts
    • 0 Thanks
    orcadian
    Having read the Help to Buy ISA guide and searched the forum I have an unanswered question:
    Jim opens a children’s Stocks and Shares ISA for his son Jack who’s 16 in 2017-18 tax year and pays the max into it £4128. But Jack has saved lots of cash over the years - he's been doing a paper round - so he also wants to open a help to buy isa as soon as possible (though he's pleased about his children's ISA).
    Which is correct
    a. Jack can open the Help to buy isa and fund it with an initial 1,200 max followed by 200 per month max in same tax year
    b. Jack can’t open a Help to buy isa as he already maxed out with his children’s isa this year
    • eskbanker
    • By eskbanker 5th Nov 17, 12:37 PM
    • 5,903 Posts
    • 5,869 Thanks
    eskbanker
    Having read the Help to Buy ISA guide and searched the forum I have an unanswered question:
    Jim opens a children’s Stocks and Shares ISA for his son Jack who’s 16 in 2017-18 tax year and pays the max into it £4128. But Jack has saved lots of cash over the years - he's been doing a paper round - so he also wants to open a help to buy isa as soon as possible (though he's pleased about his children's ISA).
    Which is correct
    a. Jack can open the Help to buy isa and fund it with an initial 1,200 max followed by 200 per month max in same tax year
    b. Jack can’t open a Help to buy isa as he already maxed out with his children’s isa this year
    Originally posted by orcadian
    According to clause 22.5.1 of the scheme rules, the answer is (a):
    in the tax year in which the child turns 16 they can subscribe up to the JISA limit, and from their 16th birthday they can, in addition, subscribe up the overall ‘adult’ ISA limit to a cash ISA.
    • dekkard
    • By dekkard 15th Nov 17, 3:11 PM
    • 97 Posts
    • 31 Thanks
    dekkard
    Barclays increasing their HTB ISA rate to 2.53% so the MSE HTB article says. I went into a Barclays branch today and they couldn't confirm the figure but said it would be going up.

    At first they told me I could only transfer in £1200 from my existing HTB ISA with another bank, and any remaining money would have to be put elsewhere. They then told me I could in fact transfer in my full amount.
    • Curls2208
    • By Curls2208 17th Nov 17, 7:06 PM
    • 22 Posts
    • 7 Thanks
    Curls2208
    Curls2208 Hi all,

    So I was wondering if anyone else took out the Halifax H2B on 1st Dec 2015. It's been brilliant with a 4 % interest rate at first and only dropping to 3.5 % last year. I'm just wondering if anyone has heard if halifax plan to change the rate this december?

    I'd imagine the 3.5% was only for existing members by the way, as I've not seen it advertised anywhere.

    Got almost 6 K saved up in it now, it's been such a good scheme.
    So I made this post a few weeks back....it's due for interest in December and that also happened to be the same date they lowered it from 4% to 3.5% last year.

    I'll let you all know what they do....did anyone else AT all get this great deal when Halifax released it in Dec 2015?
    • ziggycj
    • By ziggycj 2nd Dec 17, 9:04 PM
    • 260 Posts
    • 418 Thanks
    ziggycj
    Quick question - Is it OK to still have a cash ISA and a HTB ISA as long as I don't pay into the cash one?

    I have a help to buy ISA but just found that I still have an old cash ISA open (I thought I'd closed it). I haven't paid into the cash ISA but just wanted to check that this is OK and wont affect my Help to Buy ISA bonus eligibility.
    • eskbanker
    • By eskbanker 2nd Dec 17, 11:55 PM
    • 5,903 Posts
    • 5,869 Thanks
    eskbanker
    Quick question - Is it OK to still have a cash ISA and a HTB ISA as long as I don't pay into the cash one?

    I have a help to buy ISA but just found that I still have an old cash ISA open (I thought I'd closed it). I haven't paid into the cash ISA but just wanted to check that this is OK and wont affect my Help to Buy ISA bonus eligibility.
    Originally posted by ziggycj
    Yes, that's right, you can't pay new money into both a cash ISA and an HTB ISA (which is also a cash ISA) in the same tax year, but an old cash ISA without contributions in 2017/18 doesn't affect the HTB in any way.
    • Rich2808
    • By Rich2808 3rd Dec 17, 11:13 AM
    • 531 Posts
    • 417 Thanks
    Rich2808
    Yes, that's right, you can't pay new money into both a cash ISA and an HTB ISA (which is also a cash ISA) in the same tax year, but an old cash ISA without contributions in 2017/18 doesn't affect the HTB in any way.
    Originally posted by eskbanker
    You can though - if both your cash ISA and HTB ISA you pay into in the same fax year are with providers that allow split ISAs like Nationwide, RBS, Nat West Aldermore.
    • PapaShango84
    • By PapaShango84 4th Dec 17, 8:28 PM
    • 2 Posts
    • 0 Thanks
    PapaShango84
    So I made this post a few weeks back....it's due for interest in December and that also happened to be the same date they lowered it from 4% to 3.5% last year.

    I'll let you all know what they do....did anyone else AT all get this great deal when Halifax released it in Dec 2015?
    Originally posted by Curls2208
    Yes I did and have saved £5k so far... pleased the interest rate have maintained; we have signed up for a new build today so plan to use this cash in April.
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