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  • FIRST POST
    • Bowsa
    • By Bowsa 9th Aug 17, 10:45 AM
    • 30Posts
    • 1Thanks
    Bowsa
    H2b isa
    • #1
    • 9th Aug 17, 10:45 AM
    H2b isa 9th Aug 17 at 10:45 AM
    Hi all,

    I can't find anything about this specifically, and so I thought here would be a good start.

    Two parts to my query.

    My partner and I both have H2B ISAs which we are saving and using towards a house deposit.

    Looking at new builds we will likely need to buy flooring and fences etc, which are not covered by the mortgage.

    Through the Halifax am I right in thinking we can use any of our money towards what we like. So....

    Say 10k in an isa
    Giving 2k gov top up
    12k

    8500k deposit
    2.5k legal fees and stamp duty

    Can that spare thousand be spend on whatever we like? Or would we only get the gov top up on the amount being used for the deposit?


    Second to that if our government too up is more than the legal fees and stamp duty, would the government give us the extra towards our deposit or would they just write it off an take it back.

    E.g.

    2k legal fees and stamp duty
    3k gov top up

    They give us the 2k
    They kee the 1k

    I hope that all makes sense and you can help

    Cheers
Page 1
    • SeduLOUs
    • By SeduLOUs 9th Aug 17, 10:54 AM
    • 2,091 Posts
    • 2,476 Thanks
    SeduLOUs
    • #2
    • 9th Aug 17, 10:54 AM
    • #2
    • 9th Aug 17, 10:54 AM
    You also can’t use H2B ISA to pay for indirect costs associated with buying your home, for example solicitor or estate agent fees.

    My understanding is that the deposit on the house needs to be at least the value of the ISA + bonus.
    • Bowsa
    • By Bowsa 9th Aug 17, 7:13 PM
    • 30 Posts
    • 1 Thanks
    Bowsa
    • #3
    • 9th Aug 17, 7:13 PM
    • #3
    • 9th Aug 17, 7:13 PM
    That's a concern- Halifax told me today it was for the legal fees and stamp duty
    • whizzybee
    • By whizzybee 10th Aug 17, 9:20 AM
    • 137 Posts
    • 415 Thanks
    whizzybee
    • #4
    • 10th Aug 17, 9:20 AM
    • #4
    • 10th Aug 17, 9:20 AM
    "The bonus cannot be used for the deposit due at the exchange of contracts, to pay for solicitorís, estate agentís fees or any other indirect costs associated with buying a home."

    Direct from the website https://www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work/

    I used mine only for the deposit and I was told it could not go towards any other costs
    • Bowsa
    • By Bowsa 15th Sep 17, 9:28 AM
    • 30 Posts
    • 1 Thanks
    Bowsa
    • #5
    • 15th Sep 17, 9:28 AM
    • #5
    • 15th Sep 17, 9:28 AM
    Apologies, I thought I had replied.

    Thank you for your help
    • kingstreet
    • By kingstreet 15th Sep 17, 9:38 AM
    • 32,207 Posts
    • 17,249 Thanks
    kingstreet
    • #6
    • 15th Sep 17, 9:38 AM
    • #6
    • 15th Sep 17, 9:38 AM
    Because it's paid at completion, it does get used for other things.

    If the deposit has been paid ahead of exchange of contracts, it's difficult to see how it could be any different.

    The bonus goes into the pool of funds the solicitor has at completion, so it's not directly earmarked for anything.

    We all know what the rules say, but out in the real world they are not rigorously applied because of the way the system has been set up.

    If you like, you can read this;-

    http://forums.moneysavingexpert.com/showthread.php?t=5582683

    one of the many threads on this subject.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • SeduLOUs
    • By SeduLOUs 15th Sep 17, 9:44 AM
    • 2,091 Posts
    • 2,476 Thanks
    SeduLOUs
    • #7
    • 15th Sep 17, 9:44 AM
    • #7
    • 15th Sep 17, 9:44 AM
    Because it's paid at completion, it does get used for other things.

    If the deposit has been paid ahead of exchange of contracts, it's difficult to see how it could be any different.

    The bonus goes into the pool of funds the solicitor has at completion, so it's not directly earmarked for anything.
    Originally posted by kingstreet
    I agree, and it's bound to just get mixed up when you are topping up over and above the ISA and bonus value.

    I wonder what happens though when these accounts have time to grow in size and someone with £15k in wants to put down a deposit of £10k and use the rest for fees. It is obvious that the excess is going to be used for associated costs, so perhaps the bonus wouldn't be paid on the full amount?
    • Bowsa
    • By Bowsa 15th Sep 17, 10:27 AM
    • 30 Posts
    • 1 Thanks
    Bowsa
    • #8
    • 15th Sep 17, 10:27 AM
    • #8
    • 15th Sep 17, 10:27 AM
    Thanks for the reply kingstreet but tbh this has confused me even more......I am taking it at this point that we can will be able to use the deposit for just about anything though we need the money upfront to pay our 5% for the house......the rest will get balanced out down the line ??
    • kingstreet
    • By kingstreet 15th Sep 17, 10:57 AM
    • 32,207 Posts
    • 17,249 Thanks
    kingstreet
    • #9
    • 15th Sep 17, 10:57 AM
    • #9
    • 15th Sep 17, 10:57 AM
    The ISA investment and any interest can be used for the deposit for when you exchange contracts.

    The issue is the timing of the payment of the bonus which will usually be at completion.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Bowsa
    • By Bowsa 15th Sep 17, 11:03 AM
    • 30 Posts
    • 1 Thanks
    Bowsa
    they really do make it clear as mud lol......essentially I am working on the basis of paying for things without the bonus....then when ( / if we get it ) then it will be just that.....a bonus 0.o
    • HGW2012
    • By HGW2012 15th Sep 17, 1:34 PM
    • 91 Posts
    • 45 Thanks
    HGW2012
    I too am totally confused by it.
    To break it down then..
    on a £150k house with £15k deposit when we exchange do we give the solicitor -
    The £10,000 that is in the ISA, they then apply for the bonus £2000 leaving another £3000 from our other savings to bring it up to £15k?

    Is that right?
    • kingstreet
    • By kingstreet 15th Sep 17, 1:45 PM
    • 32,207 Posts
    • 17,249 Thanks
    kingstreet
    No.

    If you are putting down 10%, you would need to give your solicitor £15,000 which cannot include the ISA bonus.

    You then get the ISA bonus at completion.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Saga
    • By Saga 16th Sep 17, 12:11 PM
    • 38 Posts
    • 1 Thanks
    Saga
    Sorry for hijacking this thread, but may I ask: is the government bonus 25% based on the total in the HTB Isa (i.e. including any interest accrued) or only on the total deposited?
    ---
    100% debt-free!
    • katebl
    • By katebl 17th Sep 17, 11:37 AM
    • 602 Posts
    • 283 Thanks
    katebl
    Sorry for hijacking this thread, but may I ask: is the government bonus 25% based on the total in the HTB Isa (i.e. including any interest accrued) or only on the total deposited?
    Originally posted by Saga
    It gets paid on the whole amount in there so interest + deposit
    • Saga
    • By Saga 17th Sep 17, 2:42 PM
    • 38 Posts
    • 1 Thanks
    Saga
    It gets paid on the whole amount in there so interest + deposit
    Originally posted by katebl
    Thanks. That's why I'm so confused: the government site says "The maximum government bonus you can receive is £3,000", which would suggest the 25% cannot be paid on any interest?
    ---
    100% debt-free!
    • katebl
    • By katebl 17th Sep 17, 6:37 PM
    • 602 Posts
    • 283 Thanks
    katebl
    The FAQ on the same site says interest earned still gets the bonus on top - just means you'LL get to the maximum bonus slightly quicker!
    • Saga
    • By Saga 17th Sep 17, 6:54 PM
    • 38 Posts
    • 1 Thanks
    Saga
    Of course. Duh! Thanks!!
    ---
    100% debt-free!
    • HGW2012
    • By HGW2012 18th Sep 17, 8:39 AM
    • 91 Posts
    • 45 Thanks
    HGW2012
    No.

    If you are putting down 10%, you would need to give your solicitor £15,000 which cannot include the ISA bonus.

    You then get the ISA bonus at completion.
    Originally posted by kingstreet
    But then including my bonus I will be paying more than 10%

    What if I can only afford 10% including my H2B bonus? What happens then?
    • kingstreet
    • By kingstreet 18th Sep 17, 9:37 AM
    • 32,207 Posts
    • 17,249 Thanks
    kingstreet
    No. The bonus will go into the pool to pay your fees, or be refunded to you by your solicitor.

    The bonus can't be part of the deposit you hand over ahead of exchange of contracts and it never has been. Suggest speaking to your solicitor about this.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • HGW2012
    • By HGW2012 18th Sep 17, 12:13 PM
    • 91 Posts
    • 45 Thanks
    HGW2012
    No. The bonus will go into the pool to pay your fees, or be refunded to you by your solicitor.

    The bonus can't be part of the deposit you hand over ahead of exchange of contracts and it never has been. Suggest speaking to your solicitor about this.
    Originally posted by kingstreet
    Ahh I see so it just goes into the pot and we will be refunded any surplus

    Thank you, will speak to our solicitor
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