Help to Buy ISA guide

colsten

Gary1963 wrote: »

After all how will it know how it is funded as long as the money is in the account each month.

Banks will know whether your money came by SO, FP, cash, cheque etc.

The Lloyds Banking Group, of which Halifax is part, seem to have a thing about money getting deposited by SO (see the debates about the Club Lloyds Monthly Saver).

The good news is that setting up an SO is easy peasy. Just do it.

MARTYM8`

colsten wrote: »

It doesn't help to check the post code of the address you pay your council tax to when you try to establish the borough of the property you intend to buy.

It's very easy to find out that borough by asking the Estate Agent or your Solicitor, or indeed the website you linked to.

To determine whether your borough counts as London or not, you have to go to eskbanker's link.

The poster wanted to know about the area they were living in now. Generally the area is a good clue - its only in a few places (e.g. Chigwell) where one part might be in London and one not.

Its hardly rocket science anyway - they all have LONDON BOROUGH in front of the names (albeit a couple are Royal ones) bar the City of London where you won't get a property for less than £450k anyway. That's the biggest hint.

k.clarke

Hello,

Here is my situation: I have opened a normal cash ISA this year and put various amounts in since the start of the tax year (not going over the limit). I want to open a Help to buy ISA. I transferred the full amount from my ISA to my current account and closed my cash ISA. I was then unable to open a Help To Buy ISA at halifax because I "had already contributed to a cash ISA". However, I am getting slightly confused to the Money Savings Expert recent article on Help To Buy ISA's. The article states under the sub heading of "What should I do if I've already opened a cash ISA?":

“You could withdraw any money you put in a cash ISA this year (and interest from it), then open up a new Help to Buy ISA. Though if you’ve a lot in, remember the amounts you can put in a Help to Buy ISA are far smaller than the amounts in a cash ISA.”

However, one halifax member of staff informed I can open a HTB ISA and another said I can not. Can anyone inform me if they have done the same this tax year, or know if i can actually do this without it affecting my HTP bonus upon maturity of the HTP ISA in the future.

Thank you in advance.

colsten

The words from the horse's mouth, with my highlights:

I already have a cash ISA – can I open a Help to Buy: ISA too?
You can put money into a cash ISA and Help to Buy: ISA in the same tax year, but you will have to take additional steps.

If you paid into a cash ISA after 5 April 2015, to open a Help to Buy: ISA this tax year (ie before 6 April 2016), you will have to transfer your active cash ISA to a Help to Buy: ISA.

You can transfer up to £1,200 of your active cash ISA balance into your Help to Buy: ISA. Anything more than this should be moved into either a stocks and shares ISA or a non-ISA account.

Alternatively, portfolio ISAs allow you to hold multiple ISA products within a cash ISA wrapper. You can still only have one active cash ISA but it can be made up of one or more standard cash ISA products, including a Help to Buy: ISA. With a portfolio ISA, you can save into a cash ISA and a Help to Buy: ISA at the same time. The standard cash ISA and Help to Buy: ISA allowance limits will still apply.

You are able to continue to save money into a stocks and shares ISA, even if you open a Help to Buy: ISA.

- See more at: http://www.helptobuy.gov.uk/help-to-buy-isa/faq#sthash.15nKjqhe.dpuf

I would just close the existing ISA and then apply for the HTB ISA, saying I do not have another current year cash ISA.

If you are unsure, call the HMRC and get them to confirm you can do this. If yu do that, let us know what you conclude.

doccer1967

A quick question...

I have a daughter just over 16. Can I or she open a H2B in her name and I fund it? I realise it will become her money and she could/can use it as part of her house deposit. It could then be used to purchase a house/flat when she is at university.

any clues?

DOC

silvercar

What happens if you open a HTB-ISA and then inherit a property? It appears that you don't get the bonus, but can you continue to contribute to the ISA or do you have to stop making monthly payments?

Liz_Coggins

My house sale should be going through very soon - a matter of weeks possibly. As it's my first home can I open a HTB ISA now, and transfer money in from an existing ISA to get the balance up to £1600 or even £12,000 to get the maximum grant?

Presumably the money needs to be in the ISA by the date of completion. How long does it normally take to transfer an ISA? A quick reply would be VERY much appreciated. Thanks.

Archi_Bald

You need a minimum of £1,600 in the HTB ISA before you can claim a bonus.

If you are eligible, you can pay in £1,200 this month, £200 in Jan, and £200 in Feb. So you'd need to wait until at least the 1st of February to close your HTB ISA and request the bonus. You'd then be able to get £400, of which up to £50 would probably go to your Solicitor for processing the bonus request.

How do I apply for my bonus?
When you find your home, your mortgage lender will ask you to hire a solicitor or conveyancer. They will handle all of the legal aspects of buying your home, including applying for your government bonus. When you are close to finishing your purchase, you will need to let your Help to Buy: ISA provider know, and close your account and you will receive a closing letter. You will need to take this letter to your solicitor or conveyancer so that they can apply for your bonus. They will add this to the other money you are putting towards your first home.

Don’t just withdraw all of your money as you will not receive the closing letter and you won’t be able to claim your bonus.

If you lose your closing letter, your bank or building society will be able to give a new one.

- See more at: http://www.helptobuy.gov.uk/help-to-buy-isa/faq#sthash.YvQ1YAiG.dpuf

staceyg25

Johno85 wrote: »

Hi all, I like to think I'm clever enough to understand all this but I'm still a bit stumped. If anyone could simplify what I should do I would be really grateful.


I opened a cash ISA with my bank (HSBC) in January 2015 (Tax year 2014-2015)
Since January 2015 I have paid just over £6000 into the ISA
I understand that I can open a HTB ISA as I've not opened a cash ISA this tax year
I have however paid into a cash ISA this tax year (2015-2016)


Does this mean that I need to have a split HTB ISA & Cash ISA
Or can I transfer the initial £1200 into a newly opened HTB ISA for the first month and keep the rest of the money in my current cash ISA (or transfer to an ISA with a better rate)?


I hope this makes sense!!! Many thanks in advance

I am in the same boat as the above, except I have had an ISA with RBS since 2010 and have saved more than the HTB ISA minimum deposit. As I have paid in this year would I have to go for the split ISA? Or is it just a matter of not being able to newly open a cash ISA???

Archi_Bald

I just posted this elsewhere. It seems to equally apply to you:

You might be significantly better off if you close the entire ISA and open an HTB ISA with Halifax.

Put your remaining ISA money into current accounts that pay 3-5%, and also use the 5% and 6% Regular Savings accounts.

ISA-mania is often ill advised. Only the HTB ISA is good for 99.99% of all FTBs.