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  • FIRST POST
    • MSE Sam M
    • By MSE Sam M 1st Dec 15, 3:23 PM
    • 238Posts
    • 159Thanks
    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 66
    • missmoose
    • By missmoose 7th Mar 17, 3:16 PM
    • 107 Posts
    • 265 Thanks
    missmoose
    I'm not sure about the borrowing less, we told our mortgage adviser about our help to buy isas but he still put the application through as needing to borrow 95% so that's what we have in our offer.
    • Jlabriola
    • By Jlabriola 7th Mar 17, 3:26 PM
    • 6 Posts
    • 0 Thanks
    Jlabriola
    great article, very useful
    • Ange1985
    • By Ange1985 7th Mar 17, 8:04 PM
    • 1 Posts
    • 0 Thanks
    Ange1985
    Fantastic thread which has cleared up most of my questions. The only remaining question I have is ref the purchase or value limit of £250k. Both me and OH are first time buyers and have tracked a property on the market since early last year. It has dropped from £285k to £260k, the eastate agent has alluded that the guide price is £250k. My question is if we can get the purchase price down to £249999 (I think we stand a good chance) would it matter if the property value is higher? We both have well established Halifax HTB ISAs and the government bonus would help a long way to securing a better rate (we are sitting between 90% and 80% LTV. any clarification of if we are faced with purchase or valuation upper limit would help massively. TIA Ange :-)
    • masonic
    • By masonic 7th Mar 17, 8:08 PM
    • 9,126 Posts
    • 6,273 Thanks
    masonic
    My question is if we can get the purchase price down to £249999 (I think we stand a good chance) would it matter if the property value is higher?
    Originally posted by Ange1985
    The guide price is not the value of the property. The value of the property is irrelevant anyway. The rules state that the property must have a purchase price of up to £250,000. "Up to" would include exactly £250,000.
    • ourproject
    • By ourproject 10th Mar 17, 1:50 PM
    • 3 Posts
    • 0 Thanks
    ourproject
    Hi,

    Tax Year 2015 - 2016:

    1. Opened up HELP2BUY on December 2015.
    2. Did not contribute to my regular cash ISA.

    Tax Year 2016 - 2017 (This current FY):

    3. Still contributing to my HELP2BUY
    4. No other contributions to my regular cash ISA

    QUESTIONS:

    Can I contribute 15,400 for this year or am I not allowed because I am contributing £200 per month towards my HELP2BUY?

    Basically, what can I do before April 6th 2017.

    Many thanks
    • masonic
    • By masonic 10th Mar 17, 2:35 PM
    • 9,126 Posts
    • 6,273 Thanks
    masonic
    Can I contribute 15,400 for this year or am I not allowed because I am contributing £200 per month towards my HELP2BUY?

    Basically, what can I do before April 6th 2017.
    Originally posted by ourproject
    The H2B ISA is a cash ISA, so the only way you could contribute to another cash ISA is if you used a split-ISA provider, such as Nationwide. You could contribute to a S&S ISA or an IF ISA.
    • Ed-1
    • By Ed-1 10th Mar 17, 4:56 PM
    • 1,979 Posts
    • 1,057 Thanks
    Ed-1
    Hi,

    Tax Year 2015 - 2016:

    1. Opened up HELP2BUY on December 2015.
    2. Did not contribute to my regular cash ISA.

    Tax Year 2016 - 2017 (This current FY):

    3. Still contributing to my HELP2BUY
    4. No other contributions to my regular cash ISA

    QUESTIONS:

    Can I contribute 15,400 for this year or am I not allowed because I am contributing £200 per month towards my HELP2BUY?

    Basically, what can I do before April 6th 2017.

    Many thanks
    Originally posted by ourproject
    You couldn't contribute £15,400 anyway as the allowance is £15,240 until April when it rises to £20,000.
    • gssaggu1
    • By gssaggu1 10th Mar 17, 5:05 PM
    • 1 Posts
    • 0 Thanks
    gssaggu1
    Quick query (apologies if similar question has been asked)

    I’ve opened a Help-to-Buy ISA today. I intend to open a LISA in April.

    From April am I allowed to continue depositing £200 into the Help-to-Buy ISA and also open up a LISA?

    I know the annual limit of £4000 exists for the LISA (£4000/12=£333.33 monthly); would this be allowed?

    LISA April £1 open / or £333.33
    LISA May £333.33
    LISA Jun £333.33
    etc.

    Whilst also doing

    Help-to-Buy March £1200
    Help-to-Buy April £200
    Help-to-Buy May £200
    etc..

    I think I’ve been lead to believe that if I open the LISA, then the Help-to-Buy is redundant as the LISA is viewed as my active ISA for the financial year.

    Would be very grateful for any advice
    Last edited by gssaggu1; 10-03-2017 at 5:07 PM. Reason: typo
    • masonic
    • By masonic 10th Mar 17, 5:16 PM
    • 9,126 Posts
    • 6,273 Thanks
    masonic
    I think I’ve been lead to believe that if I open the LISA, then the Help-to-Buy is redundant as the LISA is viewed as my active ISA for the financial year.
    Originally posted by gssaggu1
    Nope, they are different types of ISA and you can continue contributing to both. So you can make the monthly contributions you suggest but if you wanted to transfer your HTB ISA into your LISA, then you would need to make sure your contributions between the two accounts in the next tax year did not exceed £4000 in total.
    • jess1808
    • By jess1808 10th Mar 17, 5:23 PM
    • 4 Posts
    • 0 Thanks
    jess1808
    Maybe a stupid question but I've had the Halifax Help to buy ISA for over a year now so I've still got a better rate than most (3.5%), but I've just realised that as the interest is paid annually and we're hoping to buy a house in the next year it will be before the date we would get interest, I just wanted to check they don't pay what you've gained so far in interest on closing the account?
    • masonic
    • By masonic 10th Mar 17, 5:30 PM
    • 9,126 Posts
    • 6,273 Thanks
    masonic
    Maybe a stupid question but I've had the Halifax Help to buy ISA for over a year now so I've still got a better rate than most (3.5%), but I've just realised that as the interest is paid annually and we're hoping to buy a house in the next year it will be before the date we would get interest, I just wanted to check they don't pay what you've gained so far in interest on closing the account?
    Originally posted by jess1808
    Accrued interest will be paid at closure.
    • jlaw4
    • By jlaw4 15th Mar 17, 10:07 PM
    • 95 Posts
    • 56 Thanks
    jlaw4
    Hi,

    I am currently looking for a property and i was just wondering if anyone can share any experience of using the HTB Isa at mortgage stage?

    I may potentially have more in it than the 10% deposit required for example if the property price is £140000 and its £14K deposit, but i have £15500 already in the ISAs (me and OH have one each) with bonus excluding interest. I have searched everywhere but can't seem to find any answers!
    would i just borrow less on the application as the bonus money has to be paid off the mortgage at completion?

    Thanks
    Last edited by jlaw4; 15-03-2017 at 10:09 PM.
    • bowlhead99
    • By bowlhead99 15th Mar 17, 10:11 PM
    • 6,692 Posts
    • 11,889 Thanks
    bowlhead99
    would i just borrow less on the application as the bonus money has to be paid off the mortgage at completion?
    Originally posted by jlaw4
    All the bonus money you claim has to be used towards purchasing the property (i.e., the seller of the property will get it). Consequently you will need less of a mortgage.
    • robinbanks123
    • By robinbanks123 23rd Mar 17, 7:28 PM
    • 66 Posts
    • 48 Thanks
    robinbanks123
    Hi all! Hoping someone can pit my mind at ease! I opened a help to buy ISA last June and put in the first months allowance of £1200. A month later an emergency cropped up and I needed the money back and so took it out. I got a bonus in Feb and opened a new HTB ISA with another provider and put another £1200 in followed by £200 in March! Have I done something daft here? I completely forgot the 1st ISA was opened until I got a statement through the post today showing I accrued £6ish in interest for the time it was in the wrapper. Should i have closed the 1st one before opening the 2nd one? If i transfer the 2nd into the 1st will that solve things!

    Any advice welcome just to put my mind at rest as im panicking a bit!
    Last edited by robinbanks123; 23-03-2017 at 7:49 PM. Reason: spelling error
    • masonic
    • By masonic 23rd Mar 17, 7:53 PM
    • 9,126 Posts
    • 6,273 Thanks
    masonic
    Hi all! Hoping someone can pit my mind at ease! I opened a help to buy ISA last June and put in the first months allowance of £1200. A month later an emergency cropped up and I needed the money back and so took it out. I got a. Onus in Feb and opened a new HTB ISA with another provider and put another £1200 in followed by £200 in March! Have I done something daft here? I completley forgot the 1st ISA was opened until I got a statement through the post today showing I accrued £6ish in interest for the time it was in the wrapper. Should i have closed the 1st one before opening the 2nd one? If i transfer the 2nd into the 1st will that solve things!

    Any advice welcome just to put my mind at rest as im panicking a bit!
    Originally posted by robinbanks123
    It would probably make most sense to transfer the 1st one into the 2nd one, but the effect of the specific rules of the HTB ISA is not clear to me. The 2nd one may still be valid as it could be interpreted as a self-transfer of a cash ISA (you withdrew all of the money you paid into the 1st ISA before putting the money into the 2nd), but you are only allowed to hold one HTB ISA.

    I think you are going to find it hard to get a definitive answer. Phoning HMRC for advice might be your best bet.
    • cirwin91
    • By cirwin91 29th Mar 17, 8:19 PM
    • 1 Posts
    • 0 Thanks
    cirwin91
    Is paying for Partners Help to Buy ISA allowed?
    Hi
    Looking for some advice on whether this is allowed before proceeding...

    My partner does not have the funds to save into the help to buy isa scheme but would like to.
    Is it allowed to transfer money into an account they own (A standard current account), to which they can they transfer into a help to buy isa account which they open in their name?
    The part I'm not sure about is the fact I already have a help to buy isa but I would in a sense be paying into both accounts so am curious as to whether or not they then would be able to claim back a bonus ok? We both would be purchasing our first house and meet the criteria ok.
    Any help appreciated!
    • badger09
    • By badger09 30th Mar 17, 3:35 PM
    • 5,122 Posts
    • 4,337 Thanks
    badger09
    Hi
    Looking for some advice on whether this is allowed before proceeding...

    My partner does not have the funds to save into the help to buy isa scheme but would like to.
    Is it allowed to transfer money into an account they own (A standard current account), to which they can they transfer into a help to buy isa account which they open in their name?
    The part I'm not sure about is the fact I already have a help to buy isa but I would in a sense be paying into both accounts so am curious as to whether or not they then would be able to claim back a bonus ok? We both would be purchasing our first house and meet the criteria ok.
    Any help appreciated!
    Originally posted by cirwin91
    Yes, you can do that. With the proviso that any money paid into your partner's account (ISA or non ISA) becomes legally theirs.
    • Hippognome
    • By Hippognome 31st Mar 17, 5:21 PM
    • 1 Posts
    • 0 Thanks
    Hippognome
    Hi, sorry if this has been asked and answered already: I know that if I take an amount of money out of a HTB ISA for any reason other than to help pay for a house that I would lose the goverment bonus (I assume just for the amount that's taken out and not for what's left in the HTB -- is that correct?) but would I regain that bonus if I pay the same amount back in at a later date?

    For example, say I have £1600 in the HTB and I take out £100 and lose the potential £400 bonus. If I paid back in £100 or more in the future, would I get the bonus back?
    Last edited by Hippognome; 31-03-2017 at 5:21 PM. Reason: typo
    • masonic
    • By masonic 31st Mar 17, 6:40 PM
    • 9,126 Posts
    • 6,273 Thanks
    masonic
    Hi, sorry if this has been asked and answered already: I know that if I take an amount of money out of a HTB ISA for any reason other than to help pay for a house that I would lose the goverment bonus (I assume just for the amount that's taken out and not for what's left in the HTB -- is that correct?) but would I regain that bonus if I pay the same amount back in at a later date?

    For example, say I have £1600 in the HTB and I take out £100 and lose the potential £400 bonus. If I paid back in £100 or more in the future, would I get the bonus back?
    Originally posted by Hippognome
    You will get the bonus based on the balance when you close the account to use the money for a house purchase. Exactly how you built up that closing balance is irrelevant.
    • jimmyhart
    • By jimmyhart 31st Mar 17, 10:51 PM
    • 21 Posts
    • 1 Thanks
    jimmyhart
    Hi all.

    I've got a HTB ISA at the moment and pay the 200 in on the 21st of each month as that's pretty much the date I opened it. But the monthly payments, are they every calendar month or every month after opening? If the former then I presume I can pay next months payment in tomorrow (1st) rather than 21st and it'll have that extra in before the cut off date for the HTB to LISA transfer calculation.

    Thanks.
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