Help to Buy ISA guide
in ISAs & tax-free savings
2.3K replies 358.1K views
Former_MSE_Sam_M Former MSE
346 PostsMSE Staff
Help to Buy ISA guide.
Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
Latest MSE News and Guides
British Gas prepay meter users...
...to pay less for gas from 1 AprilMSE News
The 'odd Easter flavours' thread 2023
What bizarre food stuffs have you spied?MSE Forum
Energy Price Guarantee calculator
How much you'll likely pay from AprilMSE Tools
Two questions about the HTB ISA:
1) Will we be able to get the bonus? I've seen somewhere that the minimum bonus is £400. If we are moving in February and deposit the max initial and follow up sums, that's not enough time to accrue £400 is it?
2) We are buying in my husband's name as I am his dependent presently. Assuming that I cannot also have a HTB ISA, but can you confirm this please?
"The minimum amount you need to get a bonus is £1,600 (you would get £400) and while that takes ‘three months’ to do, in practice you can do it far quicker. The reason it’s three months' worth is because you can deposit £1,200 in month one then up to £200 in each subsequent month.
Yet as a month is a calendar month, in practice you may be able to do this far more quickly, if the dates fall for you.
For example you could put £1,200 in on 31 January, then £200 in during February, and the final £200 in on 1 March just 30 days later and you’d be ready to go.
Therefore, assuming you're eligible, even if you have savings elsewhere, if you won't be needing your deposit for the next month, it's worth moving what you can into the Help to Buy ISA to get the bonus."
Are you moving in February, or starting the process in Feb? Unless you've already started negotiations for the house, it will take a few months to finalise, which should give you the extra bonus you're looking for.
But all the same, opening a HTB ISA now then closing it even on 2nd Feb will be enough time, as long as you deposit your £200 on 1st Feb.
(Edit: To explain this better - open an account today, deposit today/January/February, get 3 months bonus = £1600/£400 = enough to qualify. Withdrawal date makes no difference, it's the deposit date that counts)
- See more at: http://www.helptobuy.gov.uk/help-to-buy-isa/faq#sthash.cRHeff6g.dpuf
Ah my bad - got my wording wrong.
Thanks so much for the clarification, Tain. I think we'll be able to get the £400 boost then! Wonderful. We recently discovered I am unexpectedly pregnant (:eek:) so every penny of help is just brilliant.
Our mortgage broker advised us to do the mortgage just in my husband's name, and then once we have moved get an "agreement of trust" sorted for my security. My husband has already applied for the mortgage...