Help to Buy ISA guide

eskbanker

karenccs67 wrote: »

Do you only get the government bonus if you buy a property? If for whatever reason you don’t, do you only earn the interest the provider is paying?

Yes, to both questions.

eskbanker

stinky_daddy wrote: »

Looking at the article, is it just for people aged under 40, that can take one out - do I need to look at LISA's instead?

Which article suggests that? You seem to have it the wrong way round, in that LISAs can only be opened by under 40s but there's no upper age limit for HTB ISAs.

stinky_daddy wrote: »

What happens (in the worst-case scenario) that DS1 & DD1 don't find a property within the 10 years allowed, or, is this time-period just for the bonus from the government to be claimed by and their is no time-limit on finding a property?

The MSE HTB article sums this up: "The bonus will be added as long as you use it for a deposit by 1 December 2030", i.e. the scheme effectively ends then but the balance (including interest) can be used however the account-holder wishes after that.

flossy_splodge

If I have already opened a LISA this year can I also now open a HTB?

masonic

flossy_splodge wrote: »

If I have already opened a LISA this year can I also now open a HTB?

Yes you can, provided you haven't also opened a normal cash ISA (if you have you'd need to take extra precautions to remain within the rules).

veedubyah

I'm a home owner but want to open H2B to help my nephew out. Can I do this for him?

Remycam

Hi if me and my husband both open a H2B ISA would that then increase the maximum house price to £500,000 or the max would still be £250,000?

eskbanker

veedubyah wrote: »

I'm a home owner but want to open H2B to help my nephew out. Can I do this for him?

No, but you could give him some money so that he could open one himself, if he's eligible.

eskbanker

Remycam wrote: »

Hi if me and my husband both open a H2B ISA would that then increase the maximum house price to £500,000 or the max would still be £250,000?

The limit of £250K (or £450K in London) still applies, regardless of the number of people involved....

MbjmnSmart

My daughter has a fixed rate cash ISA with a generous amount in but it's only paying a small annual interest compared to the HTB ISA (or LISA).
She has not paid in any new cash this year at all, and simply transfered her cash ISA to a new fixed ISA earlier this year.

If she now opens a HTB ISA can she transfer in the whole amount, something like £13,000, or can she only transfer in the maximum first month payment of £1200, and then set up a £200/m pay in, via, say a Split ISA.

Or can she open both a HTB ISA, and a LISA to maximise the interest and bonus.

She may be buying her first home with the next 1 to 2 years.

eskbanker

MbjmnSmart wrote: »

If she now opens a HTB ISA can she transfer in the whole amount, something like £5000, or can she only transfer in the maximum first month payment of £1200, and then set up a £200/m pay in, via, say a Split ISA.

Transfers don't circumvent the fixed HTB ISA contribution limits so she can only pay in £1,200 in month one regardless of where it came from. There's no need to use a split ISA unless she wants to fund a (non-HTB) cash ISA, i.e. her existing cash ISA with no current year money doesn't affect her choice of institution for the HTB.

MbjmnSmart wrote: »

Or can she open both a HTB ISA, and a LISA to maximise the interest and bonus.

She can open and fund both but could only use the bonus from one or the other towards a first property purchase, not both.