Help to Buy ISA - being scrapped?

shoe123 · 10 October 2016 at 1:32PM

Hello,

My partner has just tried to setup a Help to Buy ISA in a Santander branch and was told the government are scrapping the deal in December (apparently its been recently announced), so they aren't setting up any new accounts. They arranged for him to come back to the branch later this week to setup a high interest savings account instead.

Does anyone know if this is true? Having been regularly saving in mine for quite some months now, I'll be furious if it's suddenly being closed down without warning!

I know the Help to Buy Mortgage Guarantee scheme closes down in December 2016 but I can't see anything about the ISA, other than:

Help to Buy ISAs are available from 1 December 2015 to 30 November 2019.

They won’t be available to new savers after that date, but if you opened your Help to Buy ISA before then you can keep saving into your account. You must claim your bonus by 1 December 2030.

Thanks in advance for any advice anyone can give.

Ed-1 · 10 October 2016 at 1:37PM

shoe123 wrote: »

Hello,

My partner has just tried to setup a Help to Buy ISA in a Santander branch and was told the government are scrapping the deal in December, so they aren't setting up any new accounts. They organised for him to come back to the branch later this week to setup a high interest savings account instead.

Does anyone know if this is true? Having been regularly saving in mine for quite some months now, I'll be furious if it's suddenly being closed down without warning!

I know the Help to Buy Mortgage Guarantee scheme closes down in December 2016 but I can't see anything about the ISA, other than:

Help to Buy ISAs are available from 1 December 2015 to 30 November 2019.

They won’t be available to new savers after that date, but if you opened your Help to Buy ISA before then you can keep saving into your account. You must claim your bonus by 1 December 2030.

Thanks in advance for any advice anyone can give.

No the H2B ISA is closing in December 2019 for new accounts; the Lifetime ISA is essentially accommodating it for under 40s. You can still pay into a H2B ISA and claim a bonus until December 2030.

What the branch said is complete rubbish; they've confused the H2B mortgage guarantee with the H2B ISA.

Your partner can apply online for a H2B ISA:

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

shoe123 · 10 October 2016 at 1:57PM

Brilliant, thanks for your swift reply. How annoying that the person in the branch didn't know what they were talking about!

badger09 · 10 October 2016 at 2:02PM

shoe123 wrote: »

Brilliant, thanks for your swift reply. How annoying that the person in the branch didn't know what they were talking about!

It isn't the first time, and sadly, it won't be the last:(

bigfreddiel · 10 October 2016 at 9:37PM

shoe123 wrote: »

Brilliant, thanks for your swift reply. How annoying that the person in the branch didn't know what they were talking about!

Banks etc come out really badly when surveyed on ISA rules.

I was in Santander and listened to the person at the next counter. Elderly lady wanting to move her cash ISA for a better rate. The cashier recommended cashing in and then using that to open her new cash ISA.

Now it may be that the cashier knew she would never be maxing her isas out, but nevertheless a transfer would have been the route to take.

Cheers fj

Help to Buy ISA - being scrapped?

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