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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 1
    • smokeyjoe99
    • By smokeyjoe99 1st Dec 15, 3:59 PM
    • 6 Posts
    • 4 Thanks
    smokeyjoe99
    • #2
    • 1st Dec 15, 3:59 PM
    help to buy ISA
    • #2
    • 1st Dec 15, 3:59 PM
    really useful article, especially the details of the ISAs you can split so as not to lose the rest of the allowance.
    Thanks
    • PancakeBunny
    • By PancakeBunny 1st Dec 15, 4:01 PM
    • 15 Posts
    • 7 Thanks
    PancakeBunny
    • #3
    • 1st Dec 15, 4:01 PM
    • #3
    • 1st Dec 15, 4:01 PM
    My husband and I are buying our first home in January/February (Feb looking more likely) under the shared ownership scheme.

    Two questions about the HTB ISA:

    1) Will we be able to get the bonus? I've seen somewhere that the minimum bonus is £400. If we are moving in February and deposit the max initial and follow up sums, that's not enough time to accrue £400 is it?

    2) We are buying in my husband's name as I am his dependent presently. Assuming that I cannot also have a HTB ISA, but can you confirm this please?

    Many thanks
    • PancakeBunny
    • By PancakeBunny 1st Dec 15, 4:06 PM
    • 15 Posts
    • 7 Thanks
    PancakeBunny
    • #4
    • 1st Dec 15, 4:06 PM
    • #4
    • 1st Dec 15, 4:06 PM
    PS..I read this in the guide but can't get my head around it.. think we will JUST miss out? Its a new build so not sure how long we will be able to delay for..

    "The minimum amount you need to get a bonus is £1,600 (you would get £400) and while that takes ‘three months’ to do, in practice you can do it far quicker. The reason it’s three months' worth is because you can deposit £1,200 in month one then up to £200 in each subsequent month.

    Yet as a month is a calendar month, in practice you may be able to do this far more quickly, if the dates fall for you.

    For example you could put £1,200 in on 31 January, then £200 in during February, and the final £200 in on 1 March just 30 days later and you’d be ready to go.
    Therefore, assuming you're eligible, even if you have savings elsewhere, if you won't be needing your deposit for the next month, it's worth moving what you can into the Help to Buy ISA to get the bonus."
    • tain
    • By tain 1st Dec 15, 4:17 PM
    • 473 Posts
    • 591 Thanks
    tain
    • #5
    • 1st Dec 15, 4:17 PM
    • #5
    • 1st Dec 15, 4:17 PM
    My husband and I are buying our first home in January/February (Feb looking more likely) under the shared ownership scheme.

    Two questions about the HTB ISA:

    1) Will we be able to get the bonus? I've seen somewhere that the minimum bonus is £400. If we are moving in February and deposit the max initial and follow up sums, that's not enough time to accrue £400 is it?

    2) We are buying in my husband's name as I am his dependent presently. Assuming that I cannot also have a HTB ISA, but can you confirm this please?

    Many thanks
    Originally posted by PancakeBunny

    Are you moving in February, or starting the process in Feb? Unless you've already started negotiations for the house, it will take a few months to finalise, which should give you the extra bonus you're looking for.


    But all the same, opening a HTB ISA now then closing it even on 2nd Feb will be enough time, as long as you deposit your £200 on 1st Feb.


    (Edit: To explain this better - open an account today, deposit today/January/February, get 3 months bonus = £1600/£400 = enough to qualify. Withdrawal date makes no difference, it's the deposit date that counts)
    Last edited by tain; 01-12-2015 at 4:20 PM.
    • tain
    • By tain 1st Dec 15, 4:18 PM
    • 473 Posts
    • 591 Thanks
    tain
    • #6
    • 1st Dec 15, 4:18 PM
    • #6
    • 1st Dec 15, 4:18 PM
    No idea about dependents btw. But if your name isn't on the title deed then no, you can't get a HTB ISA as well. I can't think of any reason why you wouldn't be though? Even if you don't earn any money, you're married so it should be a joint application - even for your own security.
    Last edited by tain; 01-12-2015 at 4:30 PM.
    • colsten
    • By colsten 1st Dec 15, 4:24 PM
    • 8,788 Posts
    • 7,465 Thanks
    colsten
    • #7
    • 1st Dec 15, 4:24 PM
    • #7
    • 1st Dec 15, 4:24 PM
    Do I have to be on the mortgage of the property I am buying?
    No. However, your name will have to be on the Title Deed of the property.
    - See more at: http://www.helptobuy.gov.uk/help-to-buy-isa/faq#sthash.cRHeff6g.dpuf
    • tain
    • By tain 1st Dec 15, 4:29 PM
    • 473 Posts
    • 591 Thanks
    tain
    • #8
    • 1st Dec 15, 4:29 PM
    • #8
    • 1st Dec 15, 4:29 PM
    Ah my bad - got my wording wrong.
    • PancakeBunny
    • By PancakeBunny 1st Dec 15, 4:36 PM
    • 15 Posts
    • 7 Thanks
    PancakeBunny
    • #9
    • 1st Dec 15, 4:36 PM
    • #9
    • 1st Dec 15, 4:36 PM
    No idea about dependents btw. But if your name isn't on the title deed then no, you can't get a HTB ISA as well. I can't think of any reason why you wouldn't be though? Even if you don't earn any money, you're married so it should be a joint application - even for your own security.
    Originally posted by tain
    Thanks so much for the clarification, Tain. I think we'll be able to get the £400 boost then! Wonderful. We recently discovered I am unexpectedly pregnant () so every penny of help is just brilliant.

    Our mortgage broker advised us to do the mortgage just in my husband's name, and then once we have moved get an "agreement of trust" sorted for my security. My husband has already applied for the mortgage...
    • PancakeBunny
    • By PancakeBunny 1st Dec 15, 4:39 PM
    • 15 Posts
    • 7 Thanks
    PancakeBunny
    Hmm.. so if its related to the title deeds rather than the mortgage, how would we go about getting my name put on them? Would it effect the mortgage application? Any guidance is gratefully received.
    • colsten
    • By colsten 1st Dec 15, 4:44 PM
    • 8,788 Posts
    • 7,465 Thanks
    colsten
    I am shocked that this guide doesn't mention that people can save any non-HTB money they might have into Regular Savings (aka Monthly Savings at some banks) and current accounts.
    • colsten
    • By colsten 1st Dec 15, 4:46 PM
    • 8,788 Posts
    • 7,465 Thanks
    colsten
    Hmm.. so if its related to the title deeds rather than the mortgage, how would we go about getting my name put on them? Would it effect the mortgage application? Any guidance is gratefully received.
    Originally posted by PancakeBunny
    Sorry, no idea - there's probably someone on the House buying board who would know.
    • misscleavage
    • By misscleavage 1st Dec 15, 5:18 PM
    • 4 Posts
    • 4 Thanks
    misscleavage
    Help to buy isa
    Can anyone tell me if you can use help to buy isa for a mortgage for a self build home

    Thanks
    • cecchi
    • By cecchi 1st Dec 15, 5:19 PM
    • 1 Posts
    • 2 Thanks
    cecchi
    Hi I have signed up with the Halifax today at 4%. What happens in April if they drop the interest rate? Martin Lewis said it is like any other ISA and you need to switch to get the best rate. How do you do that as there are more conditions with these Help to Buy ISA's, max deposit, so how would you move your savings to another help to buy ISA?
    • bree0511
    • By bree0511 1st Dec 15, 5:20 PM
    • 1 Posts
    • 3 Thanks
    bree0511
    further savings...
    Currently I could save the £200 per month into a HTB-ISA. I was wondering what happens if I want to open another ISA after April 2016 as I may be able to save more next year. Can I contribute to both to reach my tax free savings limit?
    • MJD
    • By MJD 1st Dec 15, 6:54 PM
    • 32 Posts
    • 7 Thanks
    MJD
    Already have a 2015/16 Cash ISA
    Have I understood this correctly?

    I am aware that I cannot have a Cash ISA and a HTB-ISA in the same tax year (yes I know that the Nationwide are doing a split ISA but that aside).
    I have paid about £3000 into a cash ISA this tax year. If I withdraw that £3000 from the account so that I no longer have a current tax year's cash ISA and do not pay any more into that account does this then qualify me to open a HTB ISA?
    • bobmorley
    • By bobmorley 1st Dec 15, 6:59 PM
    • 16 Posts
    • 5 Thanks
    bobmorley
    I'm a bit confused about the nationwide ISA spilt. Do I just apply for their regular ISA and their help to buy ISA separately, then just pay into each as normal, or do I need to do something specific? I can't see anything on their site about this at all.
    • jimjames
    • By jimjames 1st Dec 15, 7:08 PM
    • 12,181 Posts
    • 10,696 Thanks
    jimjames
    really useful article, especially the details of the ISAs you can split so as not to lose the rest of the allowance.
    Thanks
    Originally posted by smokeyjoe99
    I'm not sure why you'd need to worry about losing the rest of the allowance unless you're using it for s&s ISAs. You'll get far better return outside a cash ISA.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • MARTYM8`
    • By MARTYM8` 1st Dec 15, 7:11 PM
    • 1,197 Posts
    • 854 Thanks
    MARTYM8`
    Hi I have signed up with the Halifax today at 4%. What happens in April if they drop the interest rate? Martin Lewis said it is like any other ISA and you need to switch to get the best rate. How do you do that as there are more conditions with these Help to Buy ISA's, max deposit, so how would you move your savings to another help to buy ISA?
    Originally posted by cecchi
    You can transfer the ISA to another provider paying a better rate any time – but you must transfer the entire balance.

    Doubt Halifax will cut the rate – it’s a loss leader as they want your mortgage business and think this is a good way to entice you to join the family.

    You don’t have to take out a mortgage with your help to buy ISA provider – but they are probably hoping that you will. Compared to the profit they will make on a 25 year mortgage the 4% interest on the HTB isa is peanuts.
    • riccirus
    • By riccirus 1st Dec 15, 7:33 PM
    • 1 Posts
    • 3 Thanks
    riccirus
    It says you can only contribute to one cash isa in a tax year, does this mean that this will be the only cash isa you can out money in for as long as you have it. For example if I deposit £200 into a help to buy isa every month for 5 years i wont be able to put money into any other cash isa in those 5 years? therefore i would lose out on a lot of tax free eligible savings.
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