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Help to Buy ISA guide

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  • eskbanker
    eskbanker Posts: 36,993 Forumite
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    JohnMl88 wrote: »
    Can I open a Help to buy ISA and a LISA the same tax year?
    Yes, the ISA rules don't tend to relate to opening accounts but funding them, but either way, you can indeed pay into both a HTB and a LISA concurrently as they're different types of ISA.

    However, just in case you hadn't already spotted, you can't benefit from the 25% bonus on both if you're using them towards a first-time property purchase....
  • eskbanker wrote: »
    Yes, the ISA rules don't tend to relate to opening accounts but funding them, but either way, you can indeed pay into both a HTB and a LISA concurrently as they're different types of ISA.

    However, just in case you hadn't already spotted, you can't benefit from the 25% bonus on both if you're using them towards a first-time property purchase....
    Thanks I knew that. I’m trying to open a virgin help to buy but the website shows an error after submitting the application.
  • Hi! This is my first post so sorry if it's not in the right place!

    I have a 16 year old who currently has an every day saver (Halifax) 0.20% and wondered if it is a good idea to open a help to buy account where interest is 2.5% (Nationwide) and gradually transfer it all. It appears that you would still get the interest even if you did not spend the money on a house purchase (just lose the bonus). Are there any snags with this plan??? I would be grateful for any thoughts on this.
  • Alexland
    Alexland Posts: 10,183 Forumite
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    Friendy112 wrote: »
    I have a 16 year old who currently has an every day saver (Halifax) 0.20% and wondered if it is a good idea to open a help to buy account where interest is 2.5% (Nationwide) and gradually transfer it all. It appears that you would still get the interest even if you did not spend the money on a house purchase (just lose the bonus). Are there any snags with this plan??? I would be grateful for any thoughts on this.

    Yes HTB ISAs offer an attractive rate (there are slightly higher HTB ISA rates available in the MSE guide unless they are also contributing to a Cash ISA in the same tax year so need the HTB ISA from a Split Cash ISA provider). There is no need to make a qualifying property purchase and claim the bonus - the money can be withdrawn without penalty.

    Also worth considering a Junior ISA (would require the transfer of any existing Child Trust Fund) which have higher rates than HTB ISAs but the money would be inaccessible until 18 and offer no bonus on a property purchase in future. Still they might want to open a Lifetime ISA from age 18, if the product is still available, for a bonus on the property purchase....

    Alex
  • Hi, is it possible to set a LISA up for my daughter, without her being aware (Nice surprise in years to come) She is 19?
  • Alexland
    Alexland Posts: 10,183 Forumite
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    Hi, is it possible to set a LISA up for my daughter, without her being aware (Nice surprise in years to come) She is 19?

    No, she is an adult now so she would need to open the account herself and should be aware of all her assets. ISA managers expect adult contributions to come from a bank account in the name of the customer so they don't have to worry about money laundering, etc. You could gift her the money by transferring it into her bank account.

    Alex
  • My wife and I have a house, I had an inheritance and paid the deposit, however I'm not named on the deeds my wife is and she pays the mortgage.

    Could I still open and benefit from a HTB ISA as technically I'm not a home owner?
  • eskbanker
    eskbanker Posts: 36,993 Forumite
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    The eligibility criteria are set out in https://www.helptobuy.gov.uk/documents/2015/12/eligibility-of-ftbs.pdf - on the face of it you should be OK but it sounds a very unusual situation where you contribute the deposit for a property but don't actually take any formal stake in it, especially if there's a mortgage involved (is this solely in your wife's name?), so it may be worth checking with whichever conveyancer/solicitor set this up for you....
  • Hi
    I opened a cash ISA this year and can withdraw the money with a 24 hour delay.
    Am I able to close the account altogether and open a help to buy ISA instead? The money in my cash ISA isn't meant to be used for a house and is currently around £500. I wanted to open a help to buy ISA before November with the smallest amount possible.

    Would I have find a new one that will allow a split ISA?

    Thanks
    PJB
  • masonic
    masonic Posts: 27,172 Forumite
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    Why not transfer the existing cash ISA to a HTB ISA, then withdraw any money you don't want to keep in the HTB ISA (presuming you can find a better rate on a savings account elsewhere - otherwise I'm not sure why you wouldn't just leave it in there).
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