Help to Buy ISA guide

Lou2310

I know that only first-time buyers are eligible for the new Help To Buy ISA, but my question is this:

My partner inherited his house from an uncle. He's never had a mortgage on the property but the house is in his name. We're looking to buy a house together, but would he class as a first-time buyer or not?

Richie8778

My wife bought our current house prior to us getting married. The mortgage only in her name, would I still be able to get a HTB ISA?

colsten

jimjames wrote: »

If you're planning on buying by the 2030 deadline then S&S ISA would be perfectly reasonable

colsten

Lou2310 wrote: »

My partner inherited his house from an uncle. He's never had a mortgage on the property but the house is in his name. We're looking to buy a house together, but would he class as a first-time buyer or not?

Doubt he will. Why would someone who inherited a house think they qualified for help with purchasing their first property?

Richie8778 wrote: »

My wife bought our current house prior to us getting married. The mortgage only in her name, would I still be able to get a HTB ISA?

You would qualify if you

1. are not on the mortgage or the land registry records
2. had not had an interest in any property/land before

Here's what you would have to sign: http://www.helptobuy.gov.uk/docs/default-source/default-document-library/help-to-buy-isa---eligibility-of-ftbs.pdf?sfvrsn=2

Rich2808

Lou2310 wrote: »

I know that only first-time buyers are eligible for the new Help To Buy ISA, but my question is this:

My partner inherited his house from an uncle. He's never had a mortgage on the property but the house is in his name. We're looking to buy a house together, but would he class as a first-time buyer or not?

No - he would not.

Whether he bought a home or inherited it is irrelevant - he has owned or has had an interest in a residential property. Under the detailed scheme terms that rules him out.

You can have owned land - say a field - but not if it had a residential dwelling on it or something that could be lived in.

R11_BFC

colsten wrote: »

This is true but as she could probably make a lot more interest in many non-ISA products, a normal cash ISA is unlikely to be desirable. How old is your daughter, how much does she want to save per year and for how many years? What savings has she got already, what is her tax rate?

Thanks for replying Colsten, to the question i posed to Jim James. She's only 18 and a student - savings wise is all rather flexible and tax rate is obviously not really relevant at the moment. But and whilst i dont want to go into it (it's all rather tragic tbh) she does have some inheritance/trust money, etc., knocking around.

I (and indeed she) have been told previously to put any spare money (there's not a lot at the moment but maybe in the future) into an ISA and you cant go wrong. But looks like we can/did! No big deal - it's really what to do next?

Bit thick on all this - but the Help to Buy ISA seems like a no brainer (25% bonus) it's just the question of where to put any other spare money now and more importantly in the future? Just kind of presumed an ISA but it's looking like we've been given dodgy advice...and it's simply the best savings account (interest wise) around?

colsten

Your daughter's tax rate is very relevant as she will be able to receive any interest tax free. As she is 18, she should also be able to apply for all the interesting current accounts which she should be using instead of any normal cash ISA.

Have a look at the 5% savings loophole write-up: http://www.moneysavingexpert.com/savings/savings-loophole

Also the Regular Savings summary in the first couple of posts in: https://forums.moneysavingexpert.com/discussion/608697

This doesn't yet include the Nationwide FlexClusiver Regular Saver http://www.nationwide.co.uk/products/savings/flexclusive-regular-saver/features-and-benefits

Regular Savings accounts are excellent for drip-feeding from current accounts. There's a great calculator that illustrates how it can boost the interest you earn.http://www.moneysavingexpert.com/savings/best-regular-savings-accounts

There is a huge amount of discussion about all those current accounts on this forum.

R11_BFC

colsten wrote: »

Your daughter's tax rate is very relevant as she will be able to receive any interest tax free. As she is 18, she should also be able to apply for all the interesting current accounts which she should be using instead of any normal cash ISA.

Have a look at the 5% savings loophole write-up: http://www.moneysavingexpert.com/savings/savings-loophole

Also the Regular Savings summary in the first couple of posts in: https://forums.moneysavingexpert.com/discussion/608697

This doesn't yet include the Nationwide FlexClusiver Regular Saver http://www.nationwide.co.uk/products/savings/flexclusive-regular-saver/features-and-benefits

Regular Savings accounts are excellent for drip-feeding from current accounts. There's a great calculator that illustrates how it can boost the interest you earn.http://www.moneysavingexpert.com/savings/best-regular-savings-accounts

There is a huge amount of discussion about all those current accounts on this forum.

Brilliant - thank you. I told you i was a bit thick on all this. I will pass on. What commission do you charge?

alexandragrace

Hi


I was just wondering if anyone has seen any rules on exactly what the money in the ISA has to be used for?


I'm looking to complete on my first home in January/February so I'm unlikely to use this particular pot for the deposit but it will be used for my SDLT payment (timing wise this should also satisfy the effective minimum term for the bonus as the payment would be post 1 Feb). As it's still being used toward my first purchase I'm wondering if that's ok...


Also, I know my conveyancer will have to apply for the bonus on my behalf. I've spoken to him and he knows absolutely nothing about this, I'm wondering what the application entails?


The only "rule" I could see on this area is that the application must be submitted by the conveyancer within 12 months of the ISA being closed. But I could not see any rules in relation to when the property purchase must be completed in relation to (a) the ISA being closed (2) the application being submitted.


Any help or links would be greatly appreciated

colsten

alexandragrace wrote: »

I was just wondering if anyone has seen any rules on exactly what the money in the ISA has to be used for?

http://www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work