Is my Save to Buy ISA still valid for the the government cashback scheme?

Janey273
Janey273 Posts: 4 Newbie
in ISAs & tax-free savings
So my husband and I opened a save to buy ISA each in 2015. We are now in the process of finally buying our first home only to be told it's now help to buy ISA for the government scheme! We can close the save to buy and open a help to buy but can only put so much in per month which will take way too long. Furious is an understatement .. I have heard it may still be valid as originally it was a save to buy .. help to buy was not even around at that point but both are intended for the same thing.. for every £200 saved the government would put £50 towards the deposit. I have searched all over the internet for answers and even questioned it with nationwide.. the lady didn't have a clue with the save to buy so just wondering if anyone can shine some light on this situation? Thanku

Comments

  • Ed-1
    Ed-1 Posts: 3,891 Forumite
    First Anniversary Name Dropper First Post
    Janey273 wrote: »
    So my husband and I opened a save to buy ISA each in 2015. We are now in the process of finally buying our first home only to be told it's now help to buy ISA for the government scheme! We can close the save to buy and open a help to buy but can only put so much in per month which will take way too long. Furious is an understatement .. I have heard it may still be valid as originally it was a save to buy .. help to buy was not even around at that point but both are intended for the same thing.. for every £200 saved the government would put £50 towards the deposit. I have searched all over the internet for answers and even questioned it with nationwide.. the lady didn't have a clue with the save to buy so just wondering if anyone can shine some light on this situation? Thanku

    The Save to Buy savings account or ISA is a Nationwide-specific account that gets you cashback when you take out a Nationwide mortgage. There is no £200 per month limit.

    The Help to Buy ISA is an account that gets you a 25% Government bonus that has been available since December 2015. There is a £200 per month limit.

    The two are completely different products.
  • Janey273
    Janey273 Posts: 4 Newbie
    I am aware of this now unfortunately I'm certain we are going to lose out on the government bonus. Nationwide has a £200 limit also with the save to buy but what's more infuriating is I specifically asked for an ISA where we can get the bonus through the government. I have complained but it would take at least 8 months to move it all over to a help to buy.
  • eskbanker
    eskbanker Posts: 31,028 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Janey273 wrote: »
    what's more infuriating is I specifically asked for an ISA where we can get the bonus through the government
    Even though there wasn't such a thing at the time?
    Janey273 wrote: »
    help to buy was not even around at that point
  • Janey273
    Janey273 Posts: 4 Newbie
    The help to buy bonus scheme was started in 2015 the same year we opened these ISAs. Since I started this thread I have done a lot more research into it. Going into a building society explaining what we were looking for we should have been advised better than what we were.
    If you have nothing helpful to say please don't bother replying. The matter has now been taken further
  • eskbanker
    eskbanker Posts: 31,028 Forumite
    First Anniversary Name Dropper Photogenic First Post
    Janey273 wrote: »
    The help to buy bonus scheme was started in 2015 the same year we opened these ISAs. Since I started this thread I have done a lot more research into it. Going into a building society explaining what we were looking for we should have been advised better than what we were.
    If you have nothing helpful to say please don't bother replying. The matter has now been taken further
    No need to be like that, I was just highlighting that your own words were self-contradictory - if you want to try to make some sort of case against Nationwide then it obviously helps to get your story straight!

    As Ed-1 pointed out earlier, Help To Buy ISAs were only available for the last month of 2015 so if you were looking to start saving for a house earlier in the year then neither Nationwide nor anyone else could have offered you a product involving a government bonus prior to December, although the scheme was announced in the March budget and Nationwide had confirmed they'd be a launch provider by July: https://www.gov.uk/government/news/banks-and-building-societies-sign-up-to-offer-help-to-buy-isa
  • Rich2808
    Rich2808 Posts: 1,332 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
    edited 15 August 2017 at 8:12PM
    You can invest £1200 this month. £200 on 1 Sept and £200 on 1 October (six weeks away) in a help to buy isa and get a £400 bonus - so if you might still be able to use the product depending how soon you buy/complete. Maybe more if your purchase takes a while

    As Nationwide is a split isa provider you can open and invest in both products in any tax year - even funding your NW HTB isa by transferring sums from the NW STB isa.

    So all may not be entirely lost.

    PS I dont really see that NW was at fault - the NW STB isa pays 2% which is a good rate on up to £20k and offers a bonus if you take out at NW mortgage. They also give £500 cashback to FTBs - although there are other options of course.
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