Tell us you cash ISA questions

badger09

Tesco & BoS - both 3%

Regular Savers - up to 6%

Lots of information on the forum;)

bob_100

Hi I have a question I need help with. I am looking to purchase a property under H2B Isa, however what happens if 6 months, a year, 2 years down the line I decide to move and rent out this property.

Will I have to repay back the H2B ISA to he govn? Is there a time limit you have to stay in your purchased property to take advantage of the H2B ISA?

Thanks

eskbanker

bob_100 wrote: »

Hi I have a question I need help with. I am looking to purchase a property under H2B Isa, however what happens if 6 months, a year, 2 years down the line I decide to move and rent out this property.

Will I have to repay back the H2B ISA to he govn? Is there a time limit you have to stay in your purchased property to take advantage of the H2B ISA?

Thanks

There's no published minimum occupation time post-purchase but you might struggle to get a reasonable BTL mortgage if you're renting, or are you planning on jumping unusually quickly from no owned properties to two?

bob_100

eskbanker wrote: »

There's no published minimum occupation time post-purchase but you might struggle to get a reasonable BTL mortgage if you're renting, or are you planning on jumping unusually quickly from no owned properties to two?

My job means I relocate quite often. I have nothing concrete in place but I am just trying to garner all possible outcomes.

So my line of thinking is purchase under govn H2B ISA, but when I need to relocate I will rent it out and either rent elsewhere or purchase a 2nd property.

I just want to make sure I am able to utilise the H2B ISA?

jimjames

bob_100 wrote: »

I just want to make sure I am able to utilise the H2B ISA?

Probably safest to read the government website with all the HTB conditions or ensure your solicitor has done so to make sure. It's probably not the best option to rely on an opinion off the internet.

colsten

bob_100 wrote: »

So my line of thinking is purchase under govn H2B ISA, but when I need to relocate I will rent it out and either rent elsewhere or purchase a 2nd property.

I just want to make sure I am able to utilise the H2B ISA?

Your problem is more likely to be with the mortgage provider rather than with the HTB ISA.

MabelAT

I am acting with POA for my mother to invest her cash and ISA funds in H-L and Alliance. She has sold all the equities as she does not think she will be around long enough (though she maybe) to wait for the market to recover after the crash she foresees! Cash ISAs off relatively low rates but she does pay tax at basic rate and interest will exceed the new allowance by a lot.
Clearly long period fixed term ISAs and savings offer the best rates and I presume all would pay on death without penalty if she died before term. The best rate I have seen is for a fixed rate bond from the Castle Trust (which counts as an equity investment and is only covered by FSCS to 50,000. Are there any others similar adn are they a good vehicle. Form filling for several new accounts and ISAs is a daunting task!

jimjames

Why would you take money from equity investments where you have maybe chance of 50% loss and put it in a bond from castle trust where you could lose 100%.

If income is most important then surely keeping invested would make more sense?

SpekySquarehead

I think I'm asking this in the right area.

I'm looking to open an Help to Buy ISA soon, but I am able to save more than the max of £200 p/m. I've also recently switched to First Direct and they have a fixed term savings at 6% for 12 months. Is there any problems with having both open?

I am a complete novice to all this and I think there is some legislation that doesn't allow 2 ISA's?

Romburner

No problem there, the 6% FD saver is a regular saver, not an ISA so you can have both. The restriction is that you can't pay new money into 2 Cash ISAs in the same financial year. As one is not an ISA you are fine.