MSE News: Budget 2015: Help to Buy ISAs to launch

Pesto2606

I know people are saying this is gimmicky and house prices are rising too quickly (which in part I agree with) but as a first time buyer currently saving for a deposit i won't turn my nose up at free money.

I may only use this isa (along with other savings) for 2 years while I save up a big enough deposit but even if I only come out with £1500 contribution from the bonus voucher it still massively beats saving interest rates. I see this as a welcome extra gain.

Shame you can't put more than £200 a month in though

matttye

Any idea if you can pay a deposit from multiple sources, and use this as part of the deposit to get the bonus?

Ikkleshepp

plunt wrote: »

Hmmm my partner is a first time buyer. If she buys into the property I own so it turns into joint ownership does that count? As the charge her stamp duty on the consideration ! Also we aren't married

And finally if it is allowed will the value of the property for the purposes of the restriction be the full property value or her share of the property. This could open many doors for people!

No stamp duty would be payable in this scenario as she isn't buying your house you are just adding her name to the title deeds which a solicitor can sort. You'd just need to check with your mortgage provider as to whether that would need to change too or not, some lenders will allow joint ownership without the mortgage changing others won't. Hope this helps x

Ikkleshepp

I rent now having previously owned a house due to change of circumstances, struggling to get back on the ladder, will I qualify for this? X

mildredalien

Interesting scheme - agree it's not exactly a magic answer to buying houses but if you are saving anyway for a deposit, a bit of extra cash isn't a bad thing. I'm looking to buy a house next year with my partner, we are both first time buyers - anyone know if we'd be able to each save into a separate help to buy ISA and both get the extra cash towards a deposit?

happy_bunny_2

matttye wrote: »

Any idea if you can pay a deposit from multiple sources, and use this as part of the deposit to get the bonus?

Would be crazy if you couldn't

Semple

Accordion_lady wrote: »

Hi!
I'm a first time buyer but the way mortgage lenders calculate self employed income means I don't qualify for a mortgage for myself so I'm considering buy to let.
If I bought a buy to let property would I still qualify for this deal as I still wouldn't have my first home - so to speak!
Many thanks in advance.

Unfortunately Not:

Q. Can I use this for a buy-to-let?

No. It is only for residential mortgages

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Wilma33 wrote: »

"you'll get a voucher for the bonus which will go straight to your mortgage lender"

So can you not use the scheme if you buy a house with cash (no mortgage)?

That is my understanding, as the bonus is paid directly to the mortgage lender:

Q. How will the bonus be paid?

A. The bonus will be calculated and paid when you buy your first home – you'll get a voucher for the bonus which will go straight to your mortgage lender. So you will not get the bonus unless you buy a home.

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Ikkleshepp wrote: »

I rent now having previously owned a house due to change of circumstances, struggling to get back on the ladder, will I qualify for this? X

Doesn't appear to be the case:

Q. Who can open a Help to Buy ISA?

A. You need to be a first-time buyer (ie, never having owned a home before), and just as with a cash ISA, account holders must be aged 16 or over.

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mildredalien wrote: »

Interesting scheme - agree it's not exactly a magic answer to buying houses but if you are saving anyway for a deposit, a bit of extra cash isn't a bad thing. I'm looking to buy a house next year with my partner, we are both first time buyers - anyone know if we'd be able to each save into a separate help to buy ISA and both get the extra cash towards a deposit?

Yes :

Q. Can my partner get one too?

A. Each first-time buyer can only open one Help to Buy ISA, meaning you can't open one this tax year and then another in the next tax year. But as it's one per person, if you're a couple you can both have one and get double the boost.

kettp

The new Help to Buy ISA information says that you cannot pay into another Cash ISA during the year.


Isn't this reference to Cash ISA's a bit misleading?


I thought we'd all moved to NISA's now. Can I still pay into a Stocks and Shares ISA (now a NISA) and have a Help to Buy ISA?

Semple

kettp wrote: »

The new Help to Buy ISA information says that you cannot pay into another Cash ISA during the year.


Isn't this reference to Cash ISA's a bit misleading?


I thought we'd all moved to NISA's now. Can I still pay into a Stocks and Shares ISA (now a NISA) and have a Help to Buy ISA?

This is one point i'm quite disappointed in too. Why have a 15k+ limit, if the HTB isas can only take upto £3,400 in a year. Meaning anyone with more than £3400 needs to find somewhere else to save this money.

Also the fact that these accounts don't appear to be made available until Autumn, means anyone opting for a HTB isa will be losing out on 6 months worth of interest. Unless the new £1k personal allowance can be backdated to interest earned from now.

plunt

Ikkleshepp wrote: »

No stamp duty would be payable in this scenario as she isn't buying your house you are just adding her name to the title deeds which a solicitor can sort. You'd just need to check with your mortgage provider as to whether that would need to change too or not, some lenders will allow joint ownership without the mortgage changing others won't. Hope this helps x

from the hmrc site it looks like she is, as she will be taking come of my equity and taking on a portion of the mortgage so that we own it 50-50. (thus my equity will be reduced by her equity 'cash' input)


all up for being wrong though so more than happy to be corrected on this one