ISA help to buy - yet another confusion

edited 27 September 2015 at 10:15PM in ISAs & Tax-free Savings
3 replies 1.4K views
Dune1989Dune1989 Forumite
1 Post
edited 27 September 2015 at 10:15PM in ISAs & Tax-free Savings
I have read on multiple websites, including the government.Org UK about the soin-to-launch First Buyers Scheme and am still having some questions about how it's all supposed to work. Unsure if these details are known yet, but here is me hoping :)

1. If both my husband and I are first time buyers, can we both open an ISA account for first buyers? And if so, the value of the house still needs to be £250k? Or would be the share of the mortgage we would each be responsible for be limited to £250k? Asking as the south area (Brighton) is still really expensive when it comes to housing and £250k barely buys you a flat.

2. If we want to use the money before we raise 12k each, could we add to the amount from what we saved in another, separate, savings account? Or the deposit needs to cime entirely from the Isa account asking as rhevsavings. On the Isa are limited to £200pm and would take us quite a long time to raise it all through the Isa. Reading so far seems to say that we could do so. As we can withdraw the money from the account once we have saved £1600 (which could never be enough for a deposit) but nothing touches on this point to make it 100% clear.

Maybe it's just me looking in the wrong places, but am still rather confused on the points above. If any of you found/know/have some information that could help, it would be greatly appreciated.

Thanks in advance for the support :beer:
Ada

Replies

  • MARTYM8`MARTYM8` Forumite
    1.2K Posts
    Eighth Anniversary 1,000 Posts
    ✭✭✭
    You can have one help to buy ISA each - so that is fine.

    But the bonus will only be available on homes worth up to £450,000 in London or £250,000 anywhere else in the UK. So you can both put your help to buy ISA - and bonus - towards a joint purchase of property but the value of that property must be below these limits.

    The deposit saved via the HTB isa can of course be topped up from other savings - how else could you buy a £450k property in London on the help to buy ISA limit of £15k (for a singleton)?

    I agree the London vs rUK limits are odd - prices in Brighton are as you say more expensive than Barking and Cambridge is more expensive than Croydon price wise. But it is what it is!
  • I'm having similar difficulty. I'm currently saving for my first home in the South West, and am waiting for HTB ISAs to come in.

    But the price of property in the southwest means that by the time I have any decent amount in the HTB ISA, property prices down here may well have gone passed £250k even for a starter home.

    It is strange how they've arrived at those prices, it really feels like the race is on to save up a deposit before this is out of reach!
  • colstencolsten Forumite
    17.3K Posts
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    ✭✭✭✭✭
    I don't know where you are looking but in the generally rather expensive South East, you can easily get starter homes for well below £200K.
This discussion has been closed.
Latest MSE News and Guides

A guide to council tax bands

Lower your band & save £1,000s

MSE Guides

Cinema MoneySaving tips & tricks

Including year's 2for1 movies for £1

MSE Deals