MSE News: Help to Buy ISA rates begin to be unveiled

Rich2808

colsten wrote: »

You don't have to avail yourself of the HTB ISA if, as a prospective first time buyer, you disagree with it.

To try and make political mileage out of what appears to be a popular offering is really cheap, and not exactly a winning proposition. If you have a better scheme in mind, why not send your detailed costed proposals to George Osborne? You could make history if you have an idea nobody else has thought of yet.

Since Osborne became Chancellor thanks to his various schemes including funding for lending and help to buy house prices have risen by up to 50 per cent.

Maybe if he stopped interfering and ramping and throwing billions at propping up prices he might actually help first time buyers - by having lower prices.

The fact we are now providing taxpayer handouts to help first time buyers buy £450k homes would be comical if it wasn't so outrageous! Still the real beneficiaries of the help to buy isa - developers, bankers and estate agents will be loving it.

colsten

Same suggestion for you, Rich2808: If you have a better scheme in mind, why not send your detailed costed proposals to George Osborne? You could make history if you have an idea nobody else has thought of yet.

Rich2808

Colsten - how about trying what we did in the 1930s and 1950s and build shedloads more houses rather than ramping up prices with free money and schemes and more.

Back then of course governments worked in the interest of ordinary people. Now we have the best governments that hedge funds and developers can buy.

More houses and lower prices would help first time buyers - all these schemes do is push up prices so they become more and more unaffordable for the next round. Where will be be in 20 years - offering an 80 per cent interest free government loan so you can buy a 20 per cent share in a £1milion studio fiat in Dagenham with your zero hours contract job? !!

I would certainly not discourage people from taking advantage of this scheme - but don't be conned into thinking the Chancellor is really helping you. Cos three years ago that £450k flat in London you want would only have cost you £300k or less - so you may get £3k but have to pay £250k more including interest to buy the same flat thanks to Osbournes helpfulness!

colsten

If you have a better scheme in mind, why not send your detailed costed proposals to George Osborne? You could make history if you have an idea nobody else has thought of yet.

Rich2808

colsten wrote: »

If you have a better scheme in mind, why not send your detailed costed proposals to George Osborne? You could make history if you have an idea nobody else has thought of yet.

Osborne wouldn't be interested - he wants high house prices and ever rising ones to keep the older core vote happy. Our young people are just collateral damage.

I did point out approaches that worked under previous Tory governments - before they were bought by the financial sector and FTSE listed developers. Investing in assets always works better long term than Ponzi schemes.

We are off topic here - let's get back to trying to answer the endless questions. How could anyone design something that should be so simple but seems incredibly complicated not helped by downright lies from some providers eg you cannot open a HTB and a cash ISA in the same year. Yes you can - just not with them! Whether you should is another matter.

colsten

If you have a better scheme in mind, why not send your detailed costed proposals to George Osborne? You could make history if you have an idea nobody else has thought of yet.

There's an echo in this room.

Strummer22

FreakShow! wrote: »

I have an ISA with the post office (almost the full ISA amount I could) that I opened last year. I want to open one of these H2B ISAs for this tax year. So I can do that, but can someone explain what I can do with last years ISA? Can I transfer the full amount and get 4% on that too?

Reading the Halifax website seems to suggest that I can only transfer up the allowable limit (i.e. the £1000), but that would be of new ISA money surely, not stuff already in an ISA?

Halifax allow transfers in, as do all providers I think! The HTB ISA is like any other cash ISA except for the eligibility criteria and deposit/monthly payment limits. Therefore you can transfer into it from another ISA, but only up to the payment limits. From the T&Cs:

To open a HTB ISA and start saving, you "Should pay in at least £1. You can then pay in up to the Government's maximum amount to start saving. This is the 'initial deposit', and you must pay it (or tell us you want to transfer in other ISA savings) within 21 days of opening your account. [Remember, if you want to transfer money you've saved in another ISA, this amount (plus any interest) must not be more than the inital deposit limit]."

I have a question myself: My wife and I are both FTB and are planning to open our HTB ISAs today. However when we buy she'll probably be self employed or possibly unemployed. If I were to apply for a mortgage under just my name, would I be able to claim her HTB bonus, as she could be listed as my dependent? Or do we have to get a joint mortgage? Additionally, could it harm the chances of getting a mortgage if you apply jointly but one of you isn't earning?

colsten

Stu_N_ wrote: »

If I were to apply for a mortgage under just my name, would I be able to claim her HTB bonus, as she could be listed as my dependent? Or do we have to get a joint mortgage?

Here's your answer

Do I have to be on the mortgage of the property I am buying?
No. However, your name will have to be on the Title Deed of the property.

- See more at: http://www.helptobuy.gov.uk/help-to-buy-isa/faq#sthash.96w5oCxs.dpuf

Strummer22

colsten wrote: »

Here's your answer

Gracias.

BTW, to those griping about the minimal help this provides in most areas, I agree with you! I like it though as it should get me 2% of my purchase price within 15 months (in bonus + interest).

However, you can't really complain that it's NO HELP and that it'll DRIVE UP PRICES. It's either one or the other. The scheme rewards people who can already save, and who therefore would be able to get onto the housing ladder at some point anyway. It'll have a minimal effect on prices, as at best this will help people maybe buy a few months earlier, or have a slightly larger deposit.

When you're talking a maximum 6 grand bonus for a couple (in 4.5 years time, I might add), clearly any effect will take a while to filter through and in that time we can see the most likely scenario is that house prices in 'hot' areas will rise by a lot more than 6k. So here's my assessment:

In 'hot' areas (and London especially, where the max couple's bonus makes up a piddling 1.3% of the max house price allowed under the scheme), the scheme is of minimal help but won't push up house prices.

In 'cool' areas, which thankfully is where I want to buy, the scheme IS helpful but with my expectation that it will not increase FTB activity much (as the people taking advantage would shortly have been FTB anyway). Indeed, for the next 4-5 years it might even keep activity cooler as people delay buying to get the biggest bonus possible. Some people might see that as worthwhile if house prices are going nowhere.

mr_jrt

Interesting complication with Halifax...

I opened my account on the 1st. Read the T&Cs which stated that the monthly payment had to be in on or before the 25th, and had to be by standing order.

I took that as stating that I could deposit my £200 on the 26th of each month, to maximise the interest. Rather than set up a one-off standing order to make the £1200 initial payment on the 1st, I transferred it as a normal payment, and set up a standing order for the 26th.

I've just been on the phone to Halifax to confirm the 26th is ok, and the nice lady told me that my initial payment might be rejected as only £1000 is acceptable - the £200 has to come from a standing order, and additionally, it is a calendar month, meaning that whilst the money has to be deposited by the 25th, the next deposit cannot be made until the 1st of the subsequent month. Apparently everybody's done the same thing and transferred £1200 (who wouldn't?), and they're investigating to make sure it won't all be rejected.

What. On. Earth.

Surely there's no difference between a payment and a one-off standing order?!?!? ...and why on earth are they restricting deposits between the 25th and the end of the month? The T&Cs make no mention of this. That's 6 days of interest I'll have to miss out on...