Help to Buy ISA guide

RealElement47

eskbanker wrote: »

Yes, if both are first-time buyers, as explained in the article that this thread is all about.

So you could both save the mx amount nd both get the £3k towards the same mortgage?

So you would get £6K towards your deposit?

RealElement47

Do you have to do anything to link the accounts?

Do they have to both be opened the same time?

I want to use the max amount and use them both for deposit in the future

masonic

RealElement47 wrote: »

So you could both save the mx amount nd both get the £3k towards the same mortgage?

So you would get £6K towards your deposit?

RealElement47 wrote: »

Do you have to do anything to link the accounts?

Do they have to both be opened the same time?

I want to use the max amount and use them both for deposit in the future

Yes, you understand correctly. All you need to do is make sure both of you follow the relevant process with your solicitor during the house purchase. The claims will be treated independently.

RealElement47

Question

Can you buy shared ownership with HTB in London?

It would mean 40% interest free loan for five years on the shared ownership part of the property

masonic

RealElement47 wrote: »

Question

Can you buy shared ownership with HTB in London?

It would mean 40% interest free loan for five years on the shared ownership part of the property

Yes shared ownership in London is fine, as long as the total value of the property is below the HTB limit.

eskbanker

RealElement47 wrote: »

Question

Can you buy shared ownership with HTB in London?

It would mean 40% interest free loan for five years on the shared ownership part of the property

You may perhaps be confusing the Help To Buy Equity Loan scheme (which entails five years interest-free loan for 40% of London property value) with Help To Buy ISA (which doesn't, and is a separate scheme for saving a lump sum deposit, that this thread relates to).

JennyJukes

I currently pay in £200 to a H2B ISA. I have around 6.5k in it so it would take another 2 and a bit years to max to the £12000. I'm not sure I will buy in 2 years time, so what happens to my account then? Can I still pay in but just not receive above the bonus? Can I just stop paying in at all? Or would I need to close it (and lose potential bonus if I do buy?)

eskbanker

JennyJukes wrote: »

I currently pay in £200 to a H2B ISA. I have around 6.5k in it so it would take another 2 and a bit years to max to the £12000. I'm not sure I will buy in 2 years time, so what happens to my account then?

It carries on earning interest but no further opportunities to increase the bonus.

JennyJukes wrote: »

Can I still pay in but just not receive above the bonus?

Yes, that's my understanding, unless there are any limitations imposed by the specific product itself.

JennyJukes wrote: »

Can I just stop paying in at all?

You can stop at any time, there's no obligation to make any contributions, before or after reaching the £12K figure.

JennyJukes wrote: »

Or would I need to close it (and lose potential bonus if I do buy?)

No need to close it, keep it going until you need it, assuming this is before the scheme closure dates in 2029/2030.


Have you considered moving to a Lifetime ISA instead? No capping of bonus there, but only worth it if you know you will eventually be buying, as you have to pay a withdrawal penalty to get the money out if not (or leave it there until you're 60). For a first-time property purchase you can only use one or the other so if you go down the LISA route you'd be best to transfer your HTB money over to it, subject to the limit of £4K per tax year for all contributions, including transfers.

JennyJukes

Thanks eskbanker, that's what I thought.

I considered the Lifetime ISA but like you said, I don't know if I will be purchasing a property here in the UK. I guess if I max it out and intend to buy outside of the UK or not buy in the end, I could transfer 4k to the LISA then the rest to my savings.

fudge97

Hi - I went to open the split ISA (HelpToBuy and cash ISA) at Natwest yesterday at the Streatham branch and the advisor told me he has not heard of it. Has anyone opened a split ISAs lately at NatWest and can you advise how did you proceed?

Also can one open a new cash ISA and HTB simultaneously if you don't have an ISA with NatWest? (I haven't contributed to any ISA's this financial year). Or can you only open one of these per FY?

Thanks is advance