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  • FIRST POST
    • Chickenman1108
    • By Chickenman1108 6th Oct 17, 8:59 AM
    • 28Posts
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    Chickenman1108
    Help To Buy ISA
    • #1
    • 6th Oct 17, 8:59 AM
    Help To Buy ISA 6th Oct 17 at 8:59 AM
    Hi all
    Slightly odd question:
    My partner and I both pay £200 a month into our H2B Isas. We have just paid a reservation fee on our first home so the time has come for us to close down our H2B Isas so that we can access the funds and our solicitor can apply for the government top-up on them.
    We currently pay our £200 a month by standing order and the next instalment should be due in a weeks time. Obviously if we close the ISAs down before this we will lose the top-up on that final instalment (which, between us, would be £100).
    My question is, could we just cancel our standing orders and just do a transfer for that final £200 instalment instead? So it'd hit the ISAs a week early but it'd still be our October payment.
    My understanding is that you'll get a top-up on up to £200 per month. So as long as our last instalment was in September (which it was) it shouldnt realy matter how our October instalment is paid.
    Is that correct? Or do the payments actually have to be a full month apart?
    Many thanks for all advice
Page 1
    • Time2go
    • By Time2go 6th Oct 17, 9:07 AM
    • 198 Posts
    • 44 Thanks
    Time2go
    • #2
    • 6th Oct 17, 9:07 AM
    • #2
    • 6th Oct 17, 9:07 AM
    I believe you don't shut them down until just before completion which for you may still be weeks or months off.
    • Chickenman1108
    • By Chickenman1108 6th Oct 17, 9:09 AM
    • 28 Posts
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    Chickenman1108
    • #3
    • 6th Oct 17, 9:09 AM
    • #3
    • 6th Oct 17, 9:09 AM
    We need to close ours down before exchange as this is where we have saved our deposit
    • gettingtheresometime
    • By gettingtheresometime 6th Oct 17, 9:10 AM
    • 3,133 Posts
    • 7,318 Thanks
    gettingtheresometime
    • #4
    • 6th Oct 17, 9:10 AM
    • #4
    • 6th Oct 17, 9:10 AM
    This is exactly what my son did - paid the September contribution a few days after the August one & then closed the account getting the extra bonus.


    One thing I would be wary of is the time scales - when do you anticipated completing on the house? I only ask because if it isn't for a while then wouldn't you be better off keeping the ISA open & paying into it until you needed to?
    Lloyds OD / Natwest OD / PO CC / Wescott / Argos Card cleared thanks to the 1 debt v 100 day challenge


    Next on the list - JD Williams
    • gettingtheresometime
    • By gettingtheresometime 6th Oct 17, 9:12 AM
    • 3,133 Posts
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    gettingtheresometime
    • #5
    • 6th Oct 17, 9:12 AM
    • #5
    • 6th Oct 17, 9:12 AM
    We need to close ours down before exchange as this is where we have saved our deposit
    Originally posted by Chickenman1108


    You'll need to check this carefully as it was my understanding that money in an ISA couldn't be used as a deposit for exchange purposes & get the bonus.
    Lloyds OD / Natwest OD / PO CC / Wescott / Argos Card cleared thanks to the 1 debt v 100 day challenge


    Next on the list - JD Williams
    • Chickenman1108
    • By Chickenman1108 6th Oct 17, 9:36 AM
    • 28 Posts
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    Chickenman1108
    • #6
    • 6th Oct 17, 9:36 AM
    • #6
    • 6th Oct 17, 9:36 AM
    Hi Gettingthere
    We wont be using the top-up/bonus for the exchange - just the money that we've actually saved.
    I understand that we dont receive the top-up until completion and it'll just come off the overall completion costs.
    • clairesilverspar
    • By clairesilverspar 6th Oct 17, 12:02 PM
    • 72 Posts
    • 87 Thanks
    clairesilverspar
    • #7
    • 6th Oct 17, 12:02 PM
    • #7
    • 6th Oct 17, 12:02 PM
    It is my understanding that the time between paying a reservation fee (on a new build I presume?) and exchange can be a very long time. It was months for a family member who only just moved into their new house.
    Has your solicitor given you a date for exchange yet?
    I would wait until as close as possible to the exchange date before closing the ISA, to maximise your savings in there.
    The solicitor can apply for the top-up between exchange and completion.


    There's nothing in the rules of a H2B ISA saying you have to pay by standing order, just that you can only pay in once a month. So I can't see there being an issue with you stopping the standing order and paying in the £200, provided it is a new month and you haven't already added to it.


    Re: the top-up. I think the rules technically state it MUST be used for the actual deposit, not fees. Some solicitors are a bit more easy-going about this, but check with yours just in case. Your solicitor can negotiate a smaller payment on exchange with the top-up being paid as the remainder on completion, but they need to know to do that.
    • Visha2905
    • By Visha2905 8th Oct 17, 12:26 PM
    • 1 Posts
    • 0 Thanks
    Visha2905
    • #8
    • 8th Oct 17, 12:26 PM
    • #8
    • 8th Oct 17, 12:26 PM
    Hello,


    I'm a little confused:


    (1) I already have a lump sum of 4000 to begin saving towards a mortgage. I want to open a HTB ISA, so if the maximum I can add per tax year is £3,400, can I just put the whole £3,400 now and wait for April 2018 to come round, or would I have to follow the process of opening the account with £1,200, then adding £200 a month?


    (2) For the HTB ISA, it shows that the most you can save a year is £3,400. Does that mean if your aim was to get the full £3,000 bonus added, that you'll have to be saving for 4 years.


    Advice would be greatly appreciated
    • Lolly88
    • By Lolly88 8th Oct 17, 12:30 PM
    • 237 Posts
    • 737 Thanks
    Lolly88
    • #9
    • 8th Oct 17, 12:30 PM
    • #9
    • 8th Oct 17, 12:30 PM
    Hello,


    I'm a little confused:


    (1) I already have a lump sum of 4000 to begin saving towards a mortgage. I want to open a HTB ISA, so if the maximum I can add per tax year is £3,400, can I just put the whole £3,400 now and wait for April 2018 to come round, or would I have to follow the process of opening the account with £1,200, then adding £200 a month?


    (2) For the HTB ISA, it shows that the most you can save a year is £3,400. Does that mean if your aim was to get the full £3,000 bonus added, that you'll have to be saving for 4 years.


    Advice would be greatly appreciated
    Originally posted by Visha2905
    The maximum you can deposit in a HTB ISA is £200 a month with the exception of when you first open the account you can deposit £1200. Therefore you cannot make a lump payment. If you want the full bonus you have to be saving for several years to get it. You would be better off with a lifetime ISA if you meet the criteria as you can make lump payments with that account.
    House Fund - £30142.19
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