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    • SuboJvR
    • By SuboJvR 10th Jul 17, 3:42 PM
    • 214Posts
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    SuboJvR
    Help to Buy ISA Advice
    • #1
    • 10th Jul 17, 3:42 PM
    Help to Buy ISA Advice 10th Jul 17 at 3:42 PM
    Hi there,

    In May, I set up a Help to Buy ISA as we were aiming to buy a house in the near future.

    Things happened sooner than expected, and I then realised that we wouldn't qualify for the HTB ISA bonus, as our affordability for buying a house was more than I thought. I also didn't realise that the Help to Buy Equity Loan and Help to Buy ISA didn't have the same upper threshold! (i.e. the ISA bonus pays out up to £250k whereas the equity loan scheme goes up to £400k outside London).

    So I have the Help to Buy ISA, and I haven't put money into any other ISA this year.

    I'm not sure what the best thing to do next is?

    I have current accounts with Barclays, Nationwide (where the HTB ISA is) and Halifax, where my main bank account is. I don't want to open an account with a new bank at this stage (mortgage offer issued, don't want anymore credit searches in the intervening period before completion).

    The HTB ISA has a decent interest rate on it of 2%, and though it's not a huge amount of money, is there any harm in leaving it there for the time buying even though I know we won't be using the bonus? I will be using the money in there on completion of our house, though.

    Should I keep paying into the HTB ISA, or transfer it to another product paying less interest for the next few months (3-4)?

    At what stage must I close the HTB ISA down? Presumably, once I am in the new house! But should I be doing it at exchange?

    Thanks for any advice.

    I am considering a Santander 3-2-1 current account going forward too as our mortgage will be with them.
Page 1
    • eskbanker
    • By eskbanker 10th Jul 17, 6:10 PM
    • 5,000 Posts
    • 4,746 Thanks
    eskbanker
    • #2
    • 10th Jul 17, 6:10 PM
    • #2
    • 10th Jul 17, 6:10 PM
    Should I keep paying into the HTB ISA, or transfer it to another product paying less interest for the next few months (3-4)?
    Originally posted by SuboJvR
    I'd recommend continuing to pay in.

    At what stage must I close the HTB ISA down? Presumably, once I am in the new house! But should I be doing it at exchange?
    Originally posted by SuboJvR
    This has come up in a couple of recent threads - there are no hard and fast rules but you just need to make sure you don't declare that you're a first-time buyer once you no longer are.
    http://forums.moneysavingexpert.com/showthread.php?t=5658000
    http://forums.moneysavingexpert.com/showthread.php?t=5674091

    I am considering a Santander 3-2-1 current account going forward too as our mortgage will be with them.
    Originally posted by SuboJvR
    For those of us of a certain vintage that brings to mind this:

    but as a first-time buyer that'll probably go over your head (not a bad thing, keep it that way!). Anyway, yes, you could do worse than a Santander 1-2-3 to combine mortgage and current account/savings under the same roof, given the cashback proposition, although you can earn better interest on various other accounts if/when you're ready to open more.
    • SuboJvR
    • By SuboJvR 11th Jul 17, 1:08 PM
    • 214 Posts
    • 153 Thanks
    SuboJvR
    • #3
    • 11th Jul 17, 1:08 PM
    • #3
    • 11th Jul 17, 1:08 PM
    Thank you very much!

    The photo does ring a bell... I have an older brother so that may contribute ;-)

    I'll continue to deposit for the timebeing then, and aim to close it down at some point before we complete.

    Thanks!
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