Help to Buy ISA guide

masonic

Jenwales wrote: »

So they seem to say you can't use it for the deposit so what can you use it for? We thought that this would help us to increase our deposit for the mortgage but then read an article where one couple couldn't use it and I'm confused whether or not I can. If not I don't see if it's going to be any use to me and I'm concerned I won't have enough deposit

You can use it as the mortgage deposit. You cannot use it for any kind of deposit taken to reserve the property ahead of completion.

Notetoself

I have a cash isa with a decent anount of savings which I plan to use as a deposit on my first home. If I transfer my cash isa to a help to buy what is the max I can get towards my deposit??

Hanha81

Hi I am saving to buy my first home with my husband who has previously owned a home. We wanted to buy a new build using the help to buy equity loan. Are we able to save with the lifetime isa for the deposit and still get the equity loan?

eskbanker

Notetoself wrote: »

I have a cash isa with a decent anount of savings which I plan to use as a deposit on my first home. If I transfer my cash isa to a help to buy what is the max I can get towards my deposit??

Contributions into a HTB ISA, whether transferring from another ISA or paying in new money, are capped at £1000 upfront and then £200/month thereafter. You then get 25% bonus on the HTB ISA balance, capped at £3K on £12K (which would take just over four years to accumulate).

masonic

Hanha81 wrote: »

Hi I am saving to buy my first home with my husband who has previously owned a home. We wanted to buy a new build using the help to buy equity loan. Are we able to save with the lifetime isa for the deposit and still get the equity loan?

If your husband has previously owned a home then he won't be able to withdraw from a LISA without paying the penalty. You on the other hand, if you are a first time buyer, could put your LISA funds towards the deposit and you could both benefit from the equity loan.

All assuming that the terms of the LISA, when it is created, are as predicted.

JamesC08

I hope somebody can help...

I have been saving with the help to buy ISA, however have met someone who has previously had a home,

Can they be put on the deeds when I come to buy a house ?

Also, do I have to use only my help to buy ISA money for a deposit ? Or can I use other money that I have saved up?

Many thanks

masonic

JamesC08 wrote: »

I have been saving with the help to buy ISA, however have met someone who has previously had a home,

Can they be put on the deeds when I come to buy a house ?

Also, do I have to use only my help to buy ISA money for a deposit ? Or can I use other money that I have saved up?

Yes, you can put them on the deeds - the fact they are not a first time buyer has no bearing on you qualifying for the bonus. And yes you can put other money towards the deposit - most people would have to do this.

missmoose

I am so confused about this bonus, can anyone clarify what will happen please (figures changed for simplicity)
House - £100,000
Deposit - £5000
Mortgage offer - £95,000
Saved in ISAs - £6000
Bonus would be - £1500
So deposit + Bonus + Mortgage offer = more than the house value?

Because we're not using the full £6000 for the house will we get £1500 OR £1250 for the bonus?
It will all be closed and taken at the same time. Would we be best off putting a £6000 deposit down to get the full bonus? Or just saving it and adding it to our emergency fund.

What will happen to the bonus seeing as thought the mortgage and the deposit covers the price of the house? Will it be given to the mortgage provider to pay off a chunk of our mortgage? Will it be given to the solicitor to pay the outstanding balance? There's so many different stories and articles out there saying different things. Wish they could just write it our simply using a case story as an example and include all figures and funds including the mortgage offer, would be much easier to get my head around.

masonic

missmoose wrote: »

I am so confused about this bonus, can anyone clarify what will happen please (figures changed for simplicity)
House - £100,000
Deposit - £5000
Mortgage offer - £95,000
Saved in ISAs - £6000
Bonus would be - £1500
So deposit + Bonus + Mortgage offer = more than the house value?

Because we're not using the full £6000 for the house will we get £1500 OR £1250 for the bonus?
It will all be closed and taken at the same time. Would we be best off putting a £6000 deposit down to get the full bonus? Or just saving it and adding it to our emergency fund.

What will happen to the bonus seeing as thought the mortgage and the deposit covers the price of the house? Will it be given to the mortgage provider to pay off a chunk of our mortgage? Will it be given to the solicitor to pay the outstanding balance? There's so many different stories and articles out there saying different things. Wish they could just write it our simply using a case story as an example and include all figures and funds including the mortgage offer, would be much easier to get my head around.

It should go towards reducing the mortgage. If you want certainty, could you not borrow less?

missmoose

I'm not sure about the borrowing less, we told our mortgage adviser about our help to buy isas but he still put the application through as needing to borrow 95% so that's what we have in our offer.