2015 Budget

Starbrite

Just seen this on the BBC website

"New "Help to Buy" ISA for first-time buyers will allow government to top up by £50 every £200 saved for a deposit"

Does this mean if I have 10,000 in a save to buy isa, do an isa transfer over to their wonderful new save to buy isa I will get £2500???

HouseBuyer77

I'm sure there'll be some limits. Saw it written somewhere (the guardian possibly) that this was being seen a form of tax relief on people saving up to buy a house. So perhaps the limit will be related to how much income tax you've paid that year?

Or maybe it'll be like the regular savings accounts banks currently offer. No transfers in to start with and a regular commitment to pay £x a month. They could take £x right off your paycheque giving you tax relief there which is where the £50 extra per £200 would come from.

I'd be surprised if it's as simple as get £50 for every £200 you put in this special account.

Starbrite

As always with anything government related if it's too good to be true then normally it is!

Or as my dad would say they give it to you in one hand but take it from another....

Rollinghills

i doubt transfers in will be allowed. sounds good though if you want to wait till autumn and beyond. why does it take 6 months to start (says ftb buying now).

I imagine house prices under the limits will be under pressure for the next 6 months as ftb's think 'might as well wait'

HouseBuyer77

why does it take 6 months to start (says ftb buying now).

So the government get headlines of this awesome deal they're doing which they don't actually have to tell anyone about until post election (at which point, as Starbrite says, you'll realise the various caveats make it no where near as good as you thought).

lee111s

Maximum savings of £200 per month, so a maximum bonus of £50 per month.

It'll take 5 years (or 4.5, see below) to get the maximum allowance.

I believe you're allowed to input a one off lump of £1000 to open the account

Rollinghills

well if they are hoping this will support house prices going into the election they could be badly wrong.

But it may help ftb's looking to buy in a few years time. Looks like you can put in 1,000 initially and then 200 monthly - so it will take 55 months to get the max award if I am reading it right

pimento

Rollinghills wrote: »

why does it take 6 months to start (says ftb buying now).

Because after the election in May, they'll find a way out of it assuming they conned you into voting for them.

Plexis

So looking at the factsheet from the HMRC, its per person, so can a couple use two H2B ISA Accounts to buy one house? Technically shortening the amount of time needed in half?

Rollinghills

Yeah but to maximise payout per person you still need 55 months / 4.5 years.

Funny that this will be 5 years from now ie after 2 more general elections. Nice way to redistribute the financial burden of this scheme to the government after next.

HouseBuyer77

Factsheet here for those who haven't seen it: https://www.gov.uk/government/publications/help-to-buy-isa-factsheet