Help to Buy ISA guide

eskbanker

The_Mighty_Gusset wrote: »

Apologies if this has been asked before, it's a long thread to dig back through.
I'm 56 yrs old and due to a relationship split I'm currently looking at moving into a shared ownership house and buying a 50% share in about 3 years time.
If I open a HTB ISA can I use it for that ?
Also, the last time I had a mortgage was 30 years ago. Would anyone be able to check back that far and find out that I'm not actually a first time buyer ?

If you owned a property before then you're no longer a first time buyer and never will be again, so you're ineligible even to open a HTB ISA, end of.

If you're hoping for support, endorsement or assistance with making fraudulently dishonest declarations then this isn't the place for that sort of thing....

lidlfan

Hi

I was looking for advice on a Help to Buy ISA. This is the one where you get 25% extra towards a deposit right? The one that stops taking new accounts later in the year?

Anyway, I am in my early 40s and a council tenant. I have a few thousand saved and was considering taking this option. However I am not 100% sure I will given I already have a secure tenancy. Were I to change my mind, would I just be able to take the money back with no interest but no penalty? It's sitting accruing nothing just now in a current account anyway.

Also, if I open one prior to November or whenever the scheme stops, can I keep adding monthly amounts top it up for a while and still get the 25%? I could already put in 4 or 5 thousand but might want to add to that.

bowlhead99

lidlfan wrote: »

Anyway, I am in my early 40s and a council tenant. I have a few thousand saved and was considering taking this option. However I am not 100% sure I will given I already have a secure tenancy. Were I to change my mind, would I just be able to take the money back with no interest but no penalty?

Yes, you can close the account whenever you like, without a penalty. You will keep the interest, but you won't be able to claim the bonus 25% on the total if you withdraw the money - you only get the bonus if you buy a qualifying property.

It's sitting accruing nothing just now in a current account anyway.

Whether you choose to go for a help to buy account or not, it makes sense to move it into an account that pays interest. For example if you have £5000 in an account paying 1%, instead of 0%, that's £50 every year for free.

Many banks pay interest on current accounts - e.g. Nationwide's Flexdirect current account pays 5% on the first £2500 for the first year you have the account, which is over £100 of interest. You could spread the money over multiple interest-paying accounts to get the best rates.

Also, if I open one prior to November or whenever the scheme stops, can I keep adding monthly amounts top it up for a while and still get the 25%? I could already put in 4 or 5 thousand but might want to add to that.

Yes, although you can't open a new account after November 2019, you can keep paying into an existing one until the scheme stops in November 2029, and will still be able to buy a property during 2030.

However, you will not be able to put 4 or 5 thousand in straight away. The maximum contribution is £1000 at account opening and £200 each month thereafter. So it would take you a couple of years to gradually move all your existing savings over into the account.

Nothing to stop you doing that, and start off with £1200 in the HTB account with the other £4000 in a different good interest-paying account, gradually dripping the money over into the HTB account which also pays interest and has a nice bonus at the end.

lidlfan

Thanks a lot, Bowlhead.

Alexland

SibbyArkellGlover wrote: »

Hi, I'm married and was wondering if it is advisable for one of us to get a LISA and the other to get a Help to Buy ISA? My thought process is that the LISA would enable us to access the higher bonus amount and the Help to Buy would protect us from paying a penalty if we decide not to buy a house with the money. The only disadvantage I can think of is that by one of us using the Help to Buy and the other using the LISA, we would be restricted to the maximum house purchase price of £250k???

Sorry for the delay replying - yes that's correct if you each use a different product your purchase will be constrained by the rules of both schemes. Suggest you have a good hard think about if you are going to commit into purchasing a property in the next few years and the likely value then pick an appropriate product for your needs.

Alex

moonstr

Hi, not sure if this has been asked before but what happens to the money in the account when it gets closed?

I know the bonus gets paid to the conveyancer once approved but where does the other money go?

Thanks!

Alexland

When you close the HTB ISA the money goes back to you and they provide a closure statement that the solicitor uses to claim the bonus for a qualifying property purchase.

Makemevenricher

Hello all

Quick question. For the help to buy ISA the last date is the 30 Nov 2019 to open. It says for 16 and above and for those that have not owned a property.

My son is 16 on the 30 Nov 2019 - does that mean on that date he can still open one or does it run out at 29th November 2019 at midnight?

Thanks

masonic

Makemevenricher wrote: »

Hello all

Quick question. For the help to buy ISA the last date is the 30 Nov 2019 to open. It says for 16 and above and for those that have not owned a property.

My son is 16 on the 30 Nov 2019 - does that mean on that date he can still open one or does it run out at 29th November 2019 at midnight?

Thanks

"How long will Help to Buy: ISAs be available for?
You’ll be able to open a Help to Buy: ISA until 30 November 2019. After that date they won’t be available to new savers anymore..."
https://www.helptobuy.gov.uk/help-to-buy-isa/faq/

Rich2808

masonic wrote: »

"How long will Help to Buy: ISAs be available for?
You’ll be able to open a Help to Buy: ISA until 30 November 2019. After that date they won’t be available to new savers anymore..."
https://www.helptobuy.gov.uk/help-to-buy-isa/faq/

The guidance is a bit odd - as it says anyone over 16 when it should say anyone 16 and over?

Just to add to the confusion over this product as you need to be 16 (not 17) to open one!


"Who can open a Help to Buy: ISA?
Anyone who is over 16 and a first time buyer."