Help to Buy ISA guide
Comments
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The FAQs are pretty clear on this, as quoted in post #1462 above:benmiskowicz wrote: »Hi, in regards to a self-build I've been looking through the FAQ's and just wanted some confirmation, my partner and I own land that we have planning permission on and are in the process of getting a self build mortgage, neither of us own a home already. Will we be entitled to the bonus in these circumstances? Thanks in advance!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.0 -
Warren1989 wrote: »I'm buying with cash, is there any way I can use my funds in either a HTB ISA or a LISA to go towards the purchase?
Sorry we missed this one. Both the HTB and Lifetime ISAs require that the purchase is supported with a mortgage. You are fortunate to be in a good enough position for the government to feel you don't need their help.0 -
I've had a mortgage previously, approximately 12 years ago. According to mortgage advice I've received I'd now be classed as a First Time Buyer, however as I understand it I wouldn't be eligible for a Help to Buy ISA because of this... could anybody clarify this for me and / or recommend an alternative? Thanks!0
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Hectors_House wrote: »I've had a mortgage previously, approximately 12 years ago. According to mortgage advice I've received I'd now be classed as a First Time Buyer, however as I understand it I wouldn't be eligible for a Help to Buy ISA because of this... could anybody clarify this for me and / or recommend an alternative? Thanks!
The mortgage provider might consider you to be a first time buyer (nothing to sell, no mortgage to port, etc) but the government certainly will not so you will not be eligible for a HTB ISA or to use a LISA bonus towards a property purchase.
Those are the rules on who the government wants to help - it's a targeted initiative.
The best suggestion I can give is to make the most of 5% current account (Nationwide Flex Direct) and linked 12 month regular savers (Nationwide, HSBC, First Direct, Santander, etc). Some regular savers cannot be withdrawn early.
If under 40 you can still have a LISA with bonus to save towards retirement which is usually best alongside a workplace pension to harvest employer contributions.
Alex0 -
Thanks very much Alexland... thought as much! Thanks for the suggestions, I'll look into it - much appreciated :-)0
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Hi, not sure how this works but have a question
If you wanted a joint mortgage would you both have to have an ISA each? and if you did would this mean you wouldn't get the maximum amount, as total savings would be 12 so we would save 6 each in an account
Or could you get an ISA in one name and both save into it then have a joint name on the mortgage?
Thanks0 -
The ISA(s) and mortgage are independent of each other, so whether you have 0, 1 or 2 HTB ISAs contributing to your mortgage deposit, the end result is the same. As you say, two people with a HTB ISA each will be able to save a larger total amount, but if you're anticipating reaching anywhere near the maximum then, given the time it takes to achieve this in HTB ISAs, you'd probably be better off with Lifetime ISAs instead....If you wanted a joint mortgage would you both have to have an ISA each? and if you did would this mean you wouldn't get the maximum amount, as total savings would be 12 so we would save 6 each in an account
Or could you get an ISA in one name and both save into it then have a joint name on the mortgage?0 -
Hi, would really appreciate some advice and thank you in advance,
Me and my partner are saving for a house and are looking to buy the house we are currently renting at he end of march next year. The deposit we need is about £10,000, now im currently saving more than the £200 maximum deposit each month as is my girlfriend, so if i setup a HTB ISA and she also setup up a HTB ISA the most we will have combined is £7,600 is this correct? therefore we will have £2,400 to add to our savings in march can we add the £2,400 at the end and then still claim the £1900 combined bonus?
Im sorry if iv gone the long way around this and i really do appreciate any advice anyone can offer.0 -
You'd be best opening a Lifetime ISA each, as these allow you to save up to £4K per tax year, so you'd be able to get a larger government bonus by March 2019 than you'd get with HTBs if you get cracking asap, bearing in mind you have to have them open for a full year before using them for a property purchase....thomas_s_27 wrote: »Me and my partner are saving for a house and are looking to buy the house we are currently renting at he end of march next year. The deposit we need is about £10,000, now im currently saving more than the £200 maximum deposit each month as is my girlfriend, so if i setup a HTB ISA and she also setup up a HTB ISA the most we will have combined is £7,600 is this correct? therefore we will have £2,400 to add to our savings in march can we add the £2,400 at the end and then still claim the £1900 combined bonus?0 -
One of my grandparents has just died and I'm due to inherit a percentage of the estate - her estate includes her flat which the Executor intends to sell. Would this stop me being eligible for a Help to Buy ISA either now or after all the paperwork has been done? Should I be rushing to start one or would I have to abandon it anyway once the inheritance comes through? Thanks for any help you can give!0
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