Help to Buy ISA guide

masonic

You can only contribute to one cash ISA per tax year (a HTB ISA is a cash ISA). A small number of providers (I don't think Natwest is among them) allow you to spread your cash ISA between different products and treat it as a single ISA.

Are you confusing with Nationwide perhaps?

eskbanker

NatWest is one of the providers listed at https://www.moneysavingexpert.com/savings/best-cash-isa/#accordion-content-0334234523-3 as supporting splitting, but it's important to recognise that this is more of a concept than a product, in that it simply means that multiple actual products can be funded simultaneously without breaching HMRC rules. In other words, the question in branch shouldn't be 'can I open a split ISA' but 'can I open (and legitimately fund) a HTB and another cash ISA'.

I tried to access their site to validate their ISA stance but they've been experiencing a major online outage and currently any attempt to access their public website seems to be redirected to the online banking login page! Perhaps their internal systems were also affected in some way, hindering their ability to discuss their product range?

LEAN_TING

Hi hope someone can help me out. If I were to buy a 3 storey property with a help to buy ISA would I still be able to convert the bottom floor into a studio and rent that out as I will still be living in the house. Would just be a nice way to help pay off the mortgage thanks! :money:

eskbanker

LEAN_TING wrote: »

Hi hope someone can help me out. If I were to buy a 3 storey property with a help to buy ISA would I still be able to convert the bottom floor into a studio and rent that out as I will still be living in the house.

IMHO, yes - the declaration the buyer makes when using the HTB ISA is:

I intend to occupy the Property as my only or main residence and will, following the acquisition of the Property, occupy the Property as my only or main residence

which would exclude buying to rent out the entire place, but doesn't prevent a partial let like you describe.

LEAN_TING

Thanks alot that's what I was thinking just needed a little reassurance. Either way with the money I would be saving wouldn't be the worst thing in the world if I had to give it back!

Rich2808

eskbanker wrote: »

IMHO, yes - the declaration the buyer makes when using the HTB ISA is:which would exclude buying to rent out the entire place, but doesn't prevent a partial let like you describe.

You can just intend to live there when you claim the bonus - and then change your intention after you get the bonus! All legal - how the Government measures an intention is unclear.

eskbanker

Rich2808 wrote: »

You can just intend to live there when you claim the bonus - and then change your intention after you get the bonus! All legal - how the Government measures an intention is unclear.

The declaration at bonus application time doesn't just entail intent, the second part of the quoted wording is a firm commitment from the buyer that they will occupy the property after acquisition, which therefore makes the 25% bonus conditional on doing so. It also renders the first part redundant, commitment being stronger than intent!

There will be other checks and balances (e.g. the conveyancer will be ensuring that the purchase is facilitated via a residential mortgage rather than a buy-to-let one), but it won't be 100% bulletproof and there will no doubt be loopholes....

techiejay

Hi All,


Here's a situation that I can't see mentioned in the thread, wondered if I could nab some advice:


Me and my partner both opened Help to Buy ISAs about 2 years ago and paid in a few hundred quid each. Never got very far so we both drew the cash out again, I left my account open and it looks like my wife closed hers completely.


Am I right in thinking now that we want to start saving again that I need to start paying £200/month into mine, but because my wife closed hers over a year ago, she's free to open another elsewhere and begin with £1200 again?


Thanks for any advice!


Jay

masonic

techiejay wrote: »

Am I right in thinking now that we want to start saving again that I need to start paying £200/month into mine, but because my wife closed hers over a year ago, she's free to open another elsewhere and begin with £1200 again?

As you haven't paid into your account this tax year and it is empty, simply close it and you too can start again with a £1200 initial deposit into a new HTB ISA.

techiejay

masonic wrote: »

As you haven't paid into your account this tax year and it is empty, simply close it and you too can start again with a £1200 initial deposit into a new HTB ISA.

Oh !!!!!!. I just paid £200 into mine. Was going to do the same into hers when I discovered it was closed. Wish I'd have done that first now!