Help to Buy ISA guide

masonic

Markflatley wrote: »

Hi, I applied for a Nationwide HTP ISA last Thursday, yet I haven’t had any correspondence yet, not even a welcome email.
Is it possible to apply for one with another building society/bank, or should I just wait? I don’t want to miss out!

It would not be a good idea to open another one. Why not give them a call if you are concerned the application has not been received. It is unusual not to get a confirmation email after the application is submitted.

george4064

Markflatley wrote: »

Hi, I applied for a Nationwide HTP ISA last Thursday, yet I haven’t had any correspondence yet, not even a welcome email.
Is it possible to apply for one with another building society/bank, or should I just wait? I don’t want to miss out!

Double check with Nationwide before submitting another one!

DMc222

Hi everyone can you use a LISA for building your first house or does it have to be buying? I know help to buy ISA are only for building! But I can’t find out anywhere about LISA rules thanks

masonic

DMc222 wrote: »

Hi everyone can you use a LISA for building your first house or does it have to be buying? I know help to buy ISA are only for building! But I can’t find out anywhere about LISA rules thanks

You can use it towards buying land for a self-build property, providing you meet all of the other requirements such as taking out a mortgage.

Abbey1991

If you switch providers mid-year, can you continue to pay in for that tax year or does that count as subscribing to two in the same year?

Example:
Alison pays £200 in April, May and June to her Aldermore Help to Buy ISA
She then transfers it to Nationwide and pays in £200 in July and thereafter

masonic

Abbey1991 wrote: »

If you switch providers mid-year, can you continue to pay in for that tax year or does that count as subscribing to two in the same year?

Example:
Alison pays £200 in April, May and June to her Aldermore Help to Buy ISA
She then transfers it to Nationwide and pays in £200 in July and thereafter

No it doesn't count as subscribing to a second HTB ISA, a transferred ISA is still the same ISA, it's just under new management.

stehouk

Does anyone know what happens when the 12k maximum pay in limit is reached, i have searched santander's t&c's but cannot find any info, in fact i cannot find any info from any providers when iv'e googled it.
what happens to the account, Will i have to stop paying in ?
How long will i receive interest ? is interest included in the 12k, will i have to withdraw funds in order to keep it under the 12k

Hob345

A warning to anyone thinking of using NatWest. They claim their closing process is 5 working days, it isn't.
8 October: partner submitted closing form to Natwest in person at branch

6 Nov: received closing statement.


5 Nov: I submitted closing form in person at branch

18 Nov: still not closed and had to resubmit request and will now take 10 working days.:mad:

Rich2808

stehouk wrote: »

Does anyone know what happens when the 12k maximum pay in limit is reached, i have searched santander's t&c's but cannot find any info, in fact i cannot find any info from any providers when iv'e googled it.
what happens to the account, Will i have to stop paying in ?
How long will i receive interest ? is interest included in the 12k, will i have to withdraw funds in order to keep it under the 12k

There is nothing to prevent you continuing to pay £200 a month into the account until November 2029 and thus achieving a balance of nearly £35,000 in theory (incl accrued interest) – assuming you don’t buy a property before then. However the maximum government bonus of £3,000 is payable on a balance of £12,000 – so the only benefit of the balance exceeding £12,000 is you earn the higher interest rate payable on help to buy isas (e.g. 2.5% vs a maximum of 1.4% now on other instant access cash isas). Of course once help to buy isas cease to be sold to new applicants its possible the rates on these accounts could be lowered.
Some providers might impose their own £12k cap but I am not aware of any.

https://www.nationwide.co.uk/-/media/MainSite/documents/products/savings/terms-and-conditions/P3039-help-to-buy-isa.pdf

"23. Any part of the closing balance which exceeds £12,000 will be ignored when calculating the amount of the bonus"

stehouk

Thanks for the info Rich2808,
I'm keen to keep it going because i was one of the early applicants with Santander who signed up at 4% and it has since been increased to 4.25% so the longer it carries on the better.