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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 72
    • Lady712
    • By Lady712 8th Sep 17, 5:33 PM
    • 9 Posts
    • 0 Thanks
    Lady712
    I've just saved the attached and sent it on to my solicitor.
    • Rich2808
    • By Rich2808 8th Sep 17, 7:11 PM
    • 506 Posts
    • 397 Thanks
    Rich2808
    Hi,
    Has any one tried to get their bonus on their HTB living outside of the main london boroughs, as my solicitor has just tried and has been told that the borough i am moving to (upminster) is not a london borough even though it comes under the london borough of havering.

    Thanks
    Originally posted by Lady712
    If the property is in Upminster itself then it is in the London borough of Havering as you say. So the £450k Help to buy isa cap on the property price applies - not the £250k cap. It may have an Essex address for postal purposes - but its the administrative boundaries that matter. - its in London. There are 32 London boroughs - Havering is just as much London as Camden or Islington in terms of local government boundaries.

    You can identify which council area a property is in by typing the postcode in at this link.

    https://www.gov.uk/find-local-council

    PS Is it too late to get a new solicitor?!
    • thoragunnr
    • By thoragunnr 14th Sep 17, 10:42 PM
    • 52 Posts
    • 51 Thanks
    thoragunnr
    is it worth me waiting until I have £1,200 to deposit into the h2b account or just start with what I can afford?

    I've only got £100.00 I know I can put away each much until January (I'd usually be able to deposit £200 or more depending on wages and things but splitting this to get Christmas sorted)
    •• #238 £1000 ef; £14.00/£1,000 •• H2B; £120.00 •• BLS:£10.88/£15,000 ••
    •• Retirement: £4.86 •• New Home FundJar: £5.83p •• VOSS Jar £0.00 ••
    • Rich2808
    • By Rich2808 15th Sep 17, 5:02 PM
    • 506 Posts
    • 397 Thanks
    Rich2808
    is it worth me waiting until I have £1,200 to deposit into the h2b account or just start with what I can afford?

    I've only got £100.00 I know I can put away each much until January (I'd usually be able to deposit £200 or more depending on wages and things but splitting this to get Christmas sorted)
    Originally posted by thoragunnr
    Have just replied in your separate thread.

    If you can afford it it is best to put in the full £1200 in month one - as you can build up your bonus entitlement quicker.

    But you can put in as much or as little as you can afford. It really depends how soon you want to buy - if its in a few months you ideally want to pay in the maximum in month 1 but if it won't be for a couple of years its less of an issue.
    • Futurnerd
    • By Futurnerd 19th Sep 17, 3:33 PM
    • 1 Posts
    • 0 Thanks
    Futurnerd
    This has been very insightful. I tried researching this for a while but kept coming by conflicting information, now I feel knowledgeable. However I have one burning question.
    I read somewhere of late that the HTB scheme is no longer backed by the government monetarily but directly by private lenders.
    Q: Can you please confirm if this is truly the case, and if it is how it could affect buyers.
    Myself and my wife's are in our late 20s, we've been saving jointly with Halifax since the start of March 1000 monthly, so by next March we'll be at our 5% goal, though our aim is to buy by August 2018. Whilst finding out this information now I am clear that we can open the account and confirmed within 3 months. So we will aim to do this very soon if not by January.
    • Rich2808
    • By Rich2808 19th Sep 17, 8:22 PM
    • 506 Posts
    • 397 Thanks
    Rich2808
    This has been very insightful. I tried researching this for a while but kept coming by conflicting information, now I feel knowledgeable. However I have one burning question.
    I read somewhere of late that the HTB scheme is no longer backed by the government monetarily but directly by private lenders.
    Q: Can you please confirm if this is truly the case, and if it is how it could affect buyers.
    Myself and my wife's are in our late 20s, we've been saving jointly with Halifax since the start of March 1000 monthly, so by next March we'll be at our 5% goal, though our aim is to buy by August 2018. Whilst finding out this information now I am clear that we can open the account and confirmed within 3 months. So we will aim to do this very soon if not by January.
    Originally posted by Futurnerd
    You are confusing the help to buy ISA with help to buy equity schemes (e.g. the 20% interest free loan - 40% in London - for five years) and more particularly the help to buy mortgage guarantee.

    The help to buy isa is an entirely government backed scheme - they pay the bonus. Halifax (and other banks and building societies) just operate the savings account to allow you to save up to get the bonus when you complete on your first property.
    • Ritienne
    • By Ritienne 20th Sep 17, 1:57 PM
    • 1 Posts
    • 0 Thanks
    Ritienne
    Hi,

    Does anyone know if there are any plans of revising the cap on the help to buy isa property value? I work just outside London and looking at buying a 1-bedroom flat in the area (outside London boroughs) but most prices are over 250,000.

    I have been saving into the htb isa for a few years and it would be very frustrating not to be eligible for the bonus. My lender said they can't do anything and it's because the scheme was introduced a few years ago and it hasn't been updated to reflect changes in the property market.

    Any advice? Thanks.
    Last edited by Ritienne; 20-09-2017 at 1:59 PM.
    • Rich2808
    • By Rich2808 20th Sep 17, 7:02 PM
    • 506 Posts
    • 397 Thanks
    Rich2808
    Hi,

    Does anyone know if there are any plans of revising the cap on the help to buy isa property value? I work just outside London and looking at buying a 1-bedroom flat in the area (outside London boroughs) but most prices are over 250,000.

    I have been saving into the htb isa for a few years and it would be very frustrating not to be eligible for the bonus. My lender said they can't do anything and it's because the scheme was introduced a few years ago and it hasn't been updated to reflect changes in the property market.

    Any advice? Thanks.
    Originally posted by Ritienne
    I think its very unlikely. The lifetime ISA has a £450k limit outside London too - and I doubt they will revisit the HTB isa as its been in effect superseded by a more generous replacement (unless of course you are aged over 40).
    • Waggerz87
    • By Waggerz87 20th Sep 17, 9:13 PM
    • 1 Posts
    • 0 Thanks
    Waggerz87
    Hi
    So to cut a long story short. I opened a htb isa then decided to open another one with my bank and saved towards buying a house. When the time came my solicitor said my claim had been rejected because as I had 2 htb isa accounts open they only use the 1 which was open first. Does anyone think this is wrong?
    • thebongoking
    • By thebongoking 28th Sep 17, 8:59 AM
    • 2 Posts
    • 0 Thanks
    thebongoking
    Nationwide Split ISA transferring out confusion
    I'm hoping someone might be able to advise me on the below.

    I have the Nationwide Split ISA (Cash ISA @ 0.5% interest and HTB ISA @ 1.5% interest). I have approx £4600 in the HTB ISA part and approx £15k in the Cash ISA part. I have only paid into the HTB ISA this tax year so the £15k balance is from previous years. I want to move these amounts to new ISA but because of the special "split" status of the Nationwide ISA I'm a bit confused as to how they are treated when transferring out.

    Can I do the following:
    > Transfer the HTB part to Barclays HTB ISA (2.27% interest) - they allow transfers in
    > Transfer the Cash ISA part to a Coventry Building Society Cash ISA (1.1% interest) - they allow transfers in

    I will only be paying ISA money into the HTB ISA for the rest of the tax year.

    I already have 2 Tesco current accounts (3% interest), 1 TSB Classic Plus current account (3% interest) and 1 Nationwide Flexdirect current account (5% interest) with the maximum amounts in each and I don't have enough direct debits to satisfy opening a Santander, Bank of Scotland, Club Lloyds account hence me going for the Coventry Building Society Cash ISA option (best easy access option with flexibility).

    Thanks in advance for any help you guys can give!
    Last edited by thebongoking; 28-09-2017 at 9:30 AM. Reason: Additional information included
    • badger09
    • By badger09 28th Sep 17, 5:00 PM
    • 5,366 Posts
    • 4,590 Thanks
    badger09
    As you have not paid anything into the Cash ISA part of your split ISA since 6th April 2017, then you can arrange for it to be transferred elsewhere, separately from the HTB part.

    Effectively it became 'unsplit' on 5th April (unless you had continued to pay into both parts after that date).

    Apologies, I've struggled with the wording, but HTH
    • spatialrain
    • By spatialrain 29th Sep 17, 4:36 PM
    • 1 Posts
    • 0 Thanks
    spatialrain
    Combining HTB ISA and Equity Loan
    Hi everyone,

    My sincere apologies if this has already been asked elsewhere on this thread.

    My question is on combining both options where the caps are different. ISA with £450k and Equity Loan with £600k cap for a London property.

    Which cap applies in this case? I presume its £450k but can anyone confirm?
    • Rich2808
    • By Rich2808 2nd Oct 17, 5:27 PM
    • 506 Posts
    • 397 Thanks
    Rich2808
    I'm hoping someone might be able to advise me on the below.

    I have the Nationwide Split ISA (Cash ISA @ 0.5% interest and HTB ISA @ 1.5% interest). I have approx £4600 in the HTB ISA part and approx £15k in the Cash ISA part. I have only paid into the HTB ISA this tax year so the £15k balance is from previous years. I want to move these amounts to new ISA but because of the special "split" status of the Nationwide ISA I'm a bit confused as to how they are treated when transferring out.

    Can I do the following:
    > Transfer the HTB part to Barclays HTB ISA (2.27% interest) - they allow transfers in
    > Transfer the Cash ISA part to a Coventry Building Society Cash ISA (1.1% interest) - they allow transfers in

    I will only be paying ISA money into the HTB ISA for the rest of the tax year.

    I already have 2 Tesco current accounts (3% interest), 1 TSB Classic Plus current account (3% interest) and 1 Nationwide Flexdirect current account (5% interest) with the maximum amounts in each and I don't have enough direct debits to satisfy opening a Santander, Bank of Scotland, Club Lloyds account hence me going for the Coventry Building Society Cash ISA option (best easy access option with flexibility).

    Thanks in advance for any help you guys can give!
    Originally posted by thebongoking
    You can of course transfer both ISAs to different providers – they are separate accounts.

    The one advantage with Nationwide is they allow you to fund your HTB isa with prior year ISA transfers. So you could fund your monthly £200 for the HTB isa from the £15k cash isa (or whatever you leave if you do a partial transfer) – rather than investing £200 new which you could invest elsewhere.

    Depends what is most useful to you. But it certainly makes sense to be earning 1.05% rather than 0.5% on your £15k – the benefit of an extra 0.25% on your HTB isa is more marginal for the effort.
    • alexwilson30
    • By alexwilson30 4th Oct 17, 8:54 AM
    • 1 Posts
    • 0 Thanks
    alexwilson30
    Help gaining the 25% government bonus
    I have bought an off plan flat in July this year (2017), which is not due to be completed until Q3 2018. I had to put down £1000 holding deposit and then had to pay the remaining 10% of the purchase price within 21days. Due to the short timeframe my parents loaned me the money, with the intension of paying them back on completion (although I have access to the full amount repay them now). It makes sense to leave the money in my accounts to gain some interest as I will not be moving in for a year or so.


    It has now occurred to me how I will gain the 25% bonus from my help to buy ISA if the deposit has already been paid?


    Any ideas?
    • Rich2808
    • By Rich2808 4th Oct 17, 7:06 PM
    • 506 Posts
    • 397 Thanks
    Rich2808
    I have bought an off plan flat in July this year (2017), which is not due to be completed until Q3 2018. I had to put down £1000 holding deposit and then had to pay the remaining 10% of the purchase price within 21days. Due to the short timeframe my parents loaned me the money, with the intension of paying them back on completion (although I have access to the full amount repay them now). It makes sense to leave the money in my accounts to gain some interest as I will not be moving in for a year or so.


    It has now occurred to me how I will gain the 25% bonus from my help to buy ISA if the deposit has already been paid?


    Any ideas?
    Originally posted by alexwilson30
    Your solicitor claims the bonus between exchange and completion - you have not completed yet and wont until October next year so have plenty of time. The fact you have placed a reservation on a property with a holding deposit doesn't affect this.

    What you should do is discuss this with your solicitor and ensure they are signed up as a registered conveyancer for the scheme. And keep paying into the ISA as you should be able to accrue another £600 in bonus by paying in £200 a month for another year.
    • MaryanneCS
    • By MaryanneCS 19th Oct 17, 1:04 PM
    • 1 Posts
    • 0 Thanks
    MaryanneCS
    Hello, I've been gifted with a lump sum to go towards a mortgage. If I put the max amount for the year in a help to buy ISA, does anyone have any advice for the remaining cash?Thanks!
    • eskbanker
    • By eskbanker 19th Oct 17, 2:01 PM
    • 5,776 Posts
    • 5,648 Thanks
    eskbanker
    Hello, I've been gifted with a lump sum to go towards a mortgage. If I put the max amount for the year in a help to buy ISA, does anyone have any advice for the remaining cash?Thanks!
    Originally posted by MaryanneCS
    If you're likely to be buying in over a year (and are between 18 and 39) then it would be worth using a Lifetime ISA instead as you can pay £4K in between now and 5 April 2018 and another £4K on or after 6 April 2018, whereas with a HTB ISA you can only pay in £1200 in the first month and then £200 per month thereafter.

    Much depends on the size of your lump sum though, but read through https://www.moneysavingexpert.com/savings/which-saving-account for further ideas.
    • hrhughes1
    • By hrhughes1 19th Oct 17, 6:04 PM
    • 1 Posts
    • 0 Thanks
    hrhughes1
    Didnt get my bonus
    Me and my other half have exchanged contracts oh a property and we are completing tomorrow. One of our isa bonuses was declined by the government. This was because 2 isas were open by the same person at the same time. I had a htb isa open which had no money in then when i moved banks i closed the isa and reopened with new bank. i was told by the bank that by doing this i was still entitled to the bonus as i had never saved in a htb and used the money for a property before and now it has come to getting the bonus , (which should have been £1800ish) it has been declined. i am confused as to why this has happened?
    • eskbanker
    • By eskbanker 19th Oct 17, 7:27 PM
    • 5,776 Posts
    • 5,648 Thanks
    eskbanker
    Me and my other half have exchanged contracts oh a property and we are completing tomorrow. One of our isa bonuses was declined by the government. This was because 2 isas were open by the same person at the same time. I had a htb isa open which had no money in then when i moved banks i closed the isa and reopened with new bank. i was told by the bank that by doing this i was still entitled to the bonus as i had never saved in a htb and used the money for a property before and now it has come to getting the bonus , (which should have been £1800ish) it has been declined. i am confused as to why this has happened?
    Originally posted by hrhughes1
    It is confusing - if you'd opened a HTB ISA on the day they were launched and contributed the maximum into it ever since you'd now have £5,600 plus a bit of interest, which would give a bonus of no more than about £1,450, so I can't follow how you'd have expected £1,800?

    Anyway, I suspect that you fell foul of the rules about opening a second one, which has to wait until a subsequent tax year, as required by the HTB rules to avoid more than one being open at the same time (i.e. in the same tax year):
    If I close my account, can I open a new Help to Buy: ISA?
    If you hold a Help to Buy: ISA, and close it without claiming your government bonus, you can open a new account in the following tax year (provided the new account is opened before 30 November 2019).
    If this doesn't sound plausible, post more details about exactly what you opened, closed and contributed and when, and perhaps someone will be able to shed more light on it....
    • Emmab2505
    • By Emmab2505 24th Oct 17, 2:29 PM
    • 1 Posts
    • 0 Thanks
    Emmab2505
    Saved over our deposit amount
    Sorry if this has been asked already but I am having trouble finding anything about this so far. Basically my partner and I have been saving in our separate HTB ISA's via Halifax for over 2 years so we now have £4000 each. We are now in the later stages of buying our 1st house and have our mortgage offer sorted with a 5% deposit which equates to £6500ish. So now we are wondering do we take out money from our HTB ISA accounts so that overall we have exactly 6500 between us for deposit and the bonus from the account would be returned to us after completion or should we keep the full £8000 in them between us and therefore get a bigger bonus - would this work and would we benefit cash-wise from this or would it just go towards the mortgage and we wouldn't see the bonus anyway?


    My understanding is that the bonus is only paid on the deposit and if our deposit is £6500 we would get the bonus on that but if we put the full 8000 up would we get a few hundred pounds more?


    Apologies if any of this is confusing - happy to provide more info.
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