Help to Buy ISA guide

eskbanker

Rich2808 wrote: »

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."

Fortunately the definitive source of information, i.e. the scheme rules, has a more accurate definition, namely:

4.7 Eligible Customer

(A) A person shall only be permitted to open a Help to Buy: ISA if they are an Eligible Customer. A person is an “Eligible Customer” if they open a Help to Buy: ISA with an Eligible ISA Manager on or before 30 November 2019 and they:

(i) are 16 years of age or over; [...]

Obviously the actual rules and the FAQ, both being government-published documents, should align but it seems clear to me that the former is more reliable in the event of any contradictions. The inclusion of 30 November is also clear here, although as it's a Saturday it may be a busy day in branches for those not opening online so plan ahead!

masonic

Rich2808 wrote: »

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."

It could have been clearer, although the confusion only arises if you treat age as a discrete property. In my view, time is continuous and therefore so is age. We simply round down to a whole number for convenience (or not if we happen to be a doting mother referring to her child). I doubt any application form requires the applicant to declare their time of birth, so leaving it a few seconds after midnight on your 16th birthday should give ample leeway.

Thebear_2

I maybe being really thick with this question...

I have had a mortgage, paid it off and will be transferring ownership of the property to my ex wife shortly.

Does this mean I am a ‘first time buyer’ again?

I have rented for 10 years but would like to get another mortgage and buy again.

Sorry if this question is really stupid.

eskbanker

Thebear wrote: »

I maybe being really thick with this question...

I have had a mortgage, paid it off and will be transferring ownership of the property to my ex wife shortly.

Does this mean I am a ‘first time buyer’ again?

I have rented for 10 years but would like to get another mortgage and buy again.

Sorry if this question is really stupid.

No, if you've owned a property before then you're at least a second time buyer next time round and therefore ineligible for a HTB ISA....

Rich2808

eskbanker wrote: »

No, if you've owned a property before then you're at least a second time buyer next time round and therefore ineligible for a HTB ISA....

Agreed - and you are not eligible for the first time buyer stamp duty reduction either or drawing down a lifetime isa before 60 to fund a house purchase without penalty..

However you may be eligible for mortgage incentives for first timer buyers. For example Nationwide give £500 cashback to first time buyers - and their definition means anyone who hasn't had a mortgage in the last 3 years (or owned a home in that time). Santander offer £1,000 cashback on some products to FTBs. Other lenders may have similar schemes/cashback offers.

DanGra96

Hi, I am not long out of Uni and hoping to start saving for my own place.
I have an Instant Cash ISA from Lloyds (who my current account is with) with money already saved up.
How would I go about get a Help to Buy ISA? I.e. will I be able to transfer the money/some of the money, will I have to close this account and start a new HTB one?

Any advice would be appreciated.

eskbanker

DanGra96 wrote: »

Hi, I am not long out of Uni and hoping to start saving for my own place.
I have an Instant Cash ISA from Lloyds (who my current account is with) with money already saved up.
How would I go about get a Help to Buy ISA? I.e. will I be able to transfer the money/some of the money, will I have to close this account and start a new HTB one?

Any advice would be appreciated.

As explained in the guide that this thread is about, HTB ISA contributions are capped to a one-off £1,000 upfront and then no more than £200/month thereafter, so you can effectively shift up to £1,200 from elsewhere in the first month.

Be aware that HTB ISA is a cash ISA so ISA scheme rules mean that you can't pay new money into both your existing ISA and the HTB in the same tax year, so if you've saved into your current one since 6 April then this will complicate matters.

You might wish to consider a Lifetime ISA as an alternative, as it offers the same 25% bonus for a first-time property purchase but has a higher annual contribution limit of £4K (which can be paid in in one go if that suits you) and a higher property value cap of £450K nationwide. It's also a different type of ISA, enabling you to fund your existing one in parallel if you like....

claire21

When do you have to buy a property by ? Thinking about this for my 16 year old but is there a cut off date to buy as it would be many years until she does. Thanks

eskbanker

claire21 wrote: »

When do you have to buy a property by ? Thinking about this for my 16 year old but is there a cut off date to buy as it would be many years until she does. Thanks

As explained in the guide that this thread is about:

You can open one anytime until 30 November 2019 and you'll be able to save in it until 30 November 2029. The bonus will be added as long as you use it for a deposit by 1 December 2030.

Chris98765

I don’t think there is a limit on the loan to value on the mortgage when using a Help to Buy (H2B) ISA from what I can see on the official govt website however Nationwide appear to only allow you to use a H2B ISA for mortgages with a loan to value (LTV) of 85% or more. This is going by their available mortgages on their mortgage calculator on their website.

Has anyone used an ISA for less than a 85% LTV mortgage with Nationwide or another mortgage provider?

Thanks
Chris