Help to Buy ISA guide

eskbanker

You won't need the full 90% from your lender, you'll need to reduce this by the £1,700. Your solicitor should be able to fill you in on the details, assuming they're registered to process HTB transactions, have you checked this?

eucaliptus

eskbanker wrote: »

You won't need the full 90% from your lender, you'll need to reduce this by the £1,700. Your solicitor should be able to fill you in on the details, assuming they're registered to process HTB transactions, have you checked this?

Thanks eskbanker.

Yes the solicitor is registered to process HTB transactions.

This process seems very poorly designed. I understand you are suggesting for me to contact my lender and asking them that instead of £196.000 I will need £194,300 (basically changing my application). This seems wrong as this means that for the purchase to go through the bonus application must be successful. If something was to go wrong with the bonus application the whole purchase would fall apart.

I don't want to be depending on the bonus application to be successful when I already have the 90% offer from my lender.

Are there any alternatives?

Thanks again.

eskbanker

Lenders will be familiar with this scenario (it's the same for anyone using an HTB ISA) and in particular the minor variations between offered mortgage and the final figure needed - telling them that you 'only' need 99.1% of what they provisionally offered you really shouldn't be an issue....

Perhaps reducing the exchange downpayment by £1,700 might be viable, see what your solicitor says?

PollyWolly

If 2 people are planning on a HTB ISA with a view to buying a house together, do they have to save £400 pm or can it be less? Does it have to be £200 or is it anything upto £200pm, so can it be £200 one month and £150 the next?

Thank you

Logicalsquirrel

Trying to get my head around claiming the bonus.

Details of my purchase:
Sold for £131,000, valuation £130,000

Taking out a 90% mortgage so lending =90% of £130k = £117,000

So my deposit should be £14,000

So the exchange of contracts deposit is... 10% of £131,000? Or £14,000?

Having read some posts on the bonus and where it goes and when, I'm sure struggling to see where it fits in my scenario.

I put up the 13,100/14,000 at exchange... the bonus is due after this but goes where?

As payment towards mortgage which would decrease the LTV a bit?

I know the bonus itself I will never hold in my hand but is there any option to pay 10% at exchange LESS the bonus due, which will be eventually added to the whole funds my completion?

That way I would be able to retain the equivalent £1060 in my savings instead of it being paid towards the mortgage. Yes it will help long term but I could really use the money the month I move in.

I'm sure I'm not the only one to be disillusioned by the terms of the bonus lol

eskbanker

PollyWolly wrote: »

If 2 people are planning on a HTB ISA with a view to buying a house together, do they have to save £400 pm or can it be less? Does it have to be £200 or is it anything upto £200pm, so can it be £200 one month and £150 the next?

Thank you

£200 is the maximum monthly contribution into an HTB ISA, you don't actually have to pay anything in if you don't want to (or can't).

eskbanker

Logicalsquirrel wrote: »

I put up the 13,100/14,000 at exchange... the bonus is due after this but goes where?

As payment towards mortgage which would decrease the LTV a bit?

I know the bonus itself I will never hold in my hand but is there any option to pay 10% at exchange LESS the bonus due, which will be eventually added to the whole funds my completion?

That way I would be able to retain the equivalent £1060 in my savings instead of it being paid towards the mortgage. Yes it will help long term but I could really use the money the month I move in.

I'm sure I'm not the only one to be disillusioned by the terms of the bonus lol

See posts #1391 to 1394 above, it's the same situation.

PollyWolly

eskbanker wrote: »

£200 is the maximum monthly contribution into an HTB ISA, you don't actually have to pay anything in if you don't want to (or can't).

Thank you. So we could save for say 5 years at 150 a month, as king as it's not over 200pm and ultimately doesn't exceed £12k?

PollyWolly

*Long not king

eskbanker

PollyWolly wrote: »

Thank you. So we could save for say 5 years at 150 a month, as [STRIKE]king[/STRIKE]long as it's not over 200pm and ultimately doesn't exceed £12k?

Yes, although £12K isn't an absolute limit for the balance, it's the maximum that a bonus will be paid on.