Help to Buy ISA guide

eskbanker

robsnffc8 said:

I missed payments to my help to buy due to financial problems with being ill over the past 2 months but have still set up my help to buy ISA and put money in when I first set it up, I’m now trying to put money in to it but it says it can’t because I haven’t paid in last month? Any idea how or when I’ll be able to pay in next? 

I'm not aware of any HTB ISAs where there's a minimum monthly payment, so missing one or more months shouldn't be an issue, although you're still restricted to the maximum of £200 per month, which doesn't carry over.  Which bank's HTB ISA are you referring to?

eskbanker

sjnoble said:

My grandson opened an account with NatWest before the deadline and has taken requested paperwork into his local branch in order to complete the process. However, he has now been told that he is too late to complete the process even though he applied before the deadline. Can this be right?

The deadline to open accounts was the end of November - in some cases banks were lenient about rolling into December if they were responsible for application delays, but if your grandson has been sitting on this for three months then he's unlikely to get such a waiver IMHO, unless he can make some sort of case that NatWest were at least partially to blame....

sjnoble

He kept getting asked for additional documentation which took him sometime to find before they finally told him it was too late so partly his fault I suppose!

phfra18

Hi, I'm looking for some clarification on claiming my H2B ISA bonus and how it is counted.
So I currently have £10,400 in my ISA and am about to accept an offer from a seller to buy my first flat for £75,000. I have my AIP for £67,500 so will be putting down 10% deposit of £7,500. My solicitor fees come to £1200 approx. 
Am I correct in calculating it as:
£7500 deposit
£1200 fees
= £8700 total
minus £1875 bonus
= £6825 to transfer to solicitor

I have asked them the question but they don't seem to have had many H2B bonuses so finding it hard to get an answer.

Thanks for any help

masonic

phfra18 said:

Hi, I'm looking for some clarification on claiming my H2B ISA bonus and how it is counted.
So I currently have £10,400 in my ISA and am about to accept an offer from a seller to buy my first flat for £75,000. I have my AIP for £67,500 so will be putting down 10% deposit of £7,500. My solicitor fees come to £1200 approx. 
Am I correct in calculating it as:
£7500 deposit
£1200 fees
= £8700 total
minus £1875 bonus
= £6825 to transfer to solicitor

I have asked them the question but they don't seem to have had many H2B bonuses so finding it hard to get an answer.

Thanks for any help

The bonus on a HTB ISA valued at £10,400 is £2,600. The full £2,600 bonus must be used at completion towards the £7,500 mortgage deposit, leaving the other £4,900 + fees (= £6,100) to transfer to the solicitor. If you need to pay a deposit at exchange of >£4,900, then you would need to negotiate on this, or take out a smaller mortgage, using more of your own funds towards the purchase.

phfra18

masonic said:

phfra18 said:

Hi, I'm looking for some clarification on claiming my H2B ISA bonus and how it is counted.
So I currently have £10,400 in my ISA and am about to accept an offer from a seller to buy my first flat for £75,000. I have my AIP for £67,500 so will be putting down 10% deposit of £7,500. My solicitor fees come to £1200 approx. 
Am I correct in calculating it as:
£7500 deposit
£1200 fees
= £8700 total
minus £1875 bonus
= £6825 to transfer to solicitor

I have asked them the question but they don't seem to have had many H2B bonuses so finding it hard to get an answer.

Thanks for any help

The bonus on a HTB ISA valued at £10,400 is £2,600. The full £2,600 bonus must be used at completion towards the £7,500 mortgage deposit, leaving the other £4,900 + fees (= £6,100) to transfer to the solicitor. If you need to pay a deposit at exchange of >£4,900, then you would need to negotiate on this, or take out a smaller mortgage, using more of your own funds towards the purchase.

Thank you so much that's finally really helpful - I've been back and forth between my ISA provider, solicitor, conveyancer etc and it was all clear as mud unfortunately as all written in quite vague terminology.
I had misunderstood and thought I only qualified to apply for the bonus on what is actually used for my deposit not the total amount saved. That's actually much better than I thought

Thank you again for taking the time to respond I really appreciate it.

kenyonsj

Hi. My daughter has a HTB ISA and is buying her first property. It’s a cash only purchase as that’s what vendor specified so we (parents) are making her a substantial long term loan. However, no mortgage involved. Does that mean she gets no bonus from government and we’re also concerned from what we’ve read in building society T&Cs that they may take 25% off her money? Help please!

masonic

kenyonsj said:

Hi. My daughter has a HTB ISA and is buying her first property. It’s a cash only purchase as that’s what vendor specified so we (parents) are making her a substantial long term loan. However, no mortgage involved. Does that mean she gets no bonus from government and we’re also concerned from what we’ve read in building society T&Cs that they may take 25% off her money? Help please!

You are correct that a purchase without a mortgage is not eligible for the 25% bonus, but worry not, your daughter can close her HTB ISA and use it towards the purchase without any penalty being applied to the closing balance.

Alexland

I have read that some HTB ISA online interfaces show an indicative earned bonus against the account valuation. Obviously if she doesn't use a mortgage there isn't a qualifying purchase event so this bonus cannot be claimed. She will still have had an advantageous interest rate from the account. Once she owns an interest in the property she will no longer be eligible to keep the account.

idlebantam

Yorkshire Building Society today told me that I cannot pay the 200 per month in to my sons help to buy isa. They claim its a government rule and only my son can pay in to it. However I've read through all the gov.uk rules and I cannot find existence of this particular rule. Are they correct or are they trying to cover up an error on their behalf? They have refunded every 200 payment back to my bank account since last November. Please help?