Help to buy ISAs fo buying property outright

karljt2013

I have read lots of fanfare about this new "Help to buy ISA" and not one website (Including this one) gives any information whether this help to buy ISA bonus can be used if you want to buy a property outright as a first time buyer, without getting a mortgage. For example a £35000-£40000 flat.

Why should cash buyers be discriminated against because they have saved hard?

threefiguremini

Whoops misread that

stator

Mainly because you don't need it. The government is trying to prop up unaffordable house prices, it's not trying to dole out cash to people who can already afford to buy a house.

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.
Thus, you won't earn interest on the bonus as it will never be in your account to accrue it.

Q. Am I restricted on what mortgage I can take out?

A. No. You can use any type of residential mortgage deal you want - you're not just restricted to Help to Buy mortgages.
Always check the whole mortgage market before you opt for a mortgage deal - MSE's Mortgage Best Buys can help you. It's also wise to seek a mortgage broker's help before finally picking your deal. See Cheap Mortgage Finding for a step-by-step guide.

So you'll have to have a mortgage. You'll also have to wait 4 years until you have earned the max bonus. If you can afford to buy you might as well do it now.
House price inflation might outstrip the bonus anyway

bouicca21

er, possibly because DC is discriminating in favour of those whose votes he needs to buy ...

LplateSaver

stator wrote: »

Mainly because you don't need it. The government is trying to prop up unaffordable house prices, it's not trying to dole out cash to people who can already afford to buy a house.



So you'll have to have a mortgage. You'll also have to wait 4 years until you have earned the max bonus. If you can afford to buy you might as well do it now.
House price inflation might outstrip the bonus anyway

Interesting I didn't realise it was paid directly to the lender. I was including it in my deposit calculations is that wrong then?

stator

LplateSaver wrote: »

Interesting I didn't realise it was paid directly to the lender. I was including it in my deposit calculations is that wrong then?

No I assume the lendr will accept the voucher as part of the funds for your deposit.

patman99

At least this scheme is better thought-out than the 'Help to buy' schemes. These are setting-up buyers to purchase houses they won't be able to afford the mortgage on in 3 years time, so there will be a large number of repos coming on to the market place.