Help to Buy ISA guide

Alexland

You are fine if the HTB ISA goes over £12k but the bonus is limited to £3k however it doesn't sound like you will get a bonus as the property will be above the price limit. As such it's just a good interest savings account.

If you want to get a 25% bonus on a property costing £400k outside London you would need to use a Lifetime ISA which goes up to £450k. You can add or transfer up to £4k per tax year into a LISA starting on 6th April each year. The LISA would need to be open 12 months before being used to support the purchase. However beware if the property is above £450k then you cannot withdraw without penalty before age 60.

If a LISA meets your needs and you act very quickly you might still be able to deposit the first £4k into a LISA this week to count against this tax year.

AshJones94

Hi, I was made redundant on the 6th March, which meant I couldn’t pay into my help to buy ISA account I went into a Halifax branch and explain I was worried if it would effect my ISA account as no  money will be going into this account the lady told me that’s its fine and won’t effect my account I am now back working 03/04/20 and trying to  transfer money in to ISA account which is now saying we can not process your transactions outside the 60 day funding. Please could you help explain this many thanks 

eskbanker

AshJones94 said:

Hi, I was made redundant on the 6th March, which meant I couldn’t pay into my help to buy ISA account I went into a Halifax branch and explain I was worried if it would effect my ISA account as no  money will be going into this account the lady told me that’s its fine and won’t effect my account I am now back working 03/04/20 and trying to  transfer money in to ISA account which is now saying we can not process your transactions outside the 60 day funding. Please could you help explain this many thanks 

There's no obligation to pay into a HTB ISA in any given month but there is the strict £200 monthly contribution limit, you're not trying to pay in more than this are you?  HTB ISAs are designed to be funded every month so there isn't a limited 60 day window like there is for some fixed-term products, so it's not clear exactly what you're being told and by whom - how are you trying to pay in that generates this error message?

athonjon

Hi. Does anyone know of any other providers, not listed in the current article, who allow HtB ISA transfers in? I'm particularly interested in providers that allow split ISAs. Cheers

margaretx9

athonjon said:

Hi. Does anyone know of any other providers, not listed in the current article, who allow HtB ISA transfers in? I'm particularly interested in providers that allow split ISAs. Cheers

j.p said:

athonjon said:

Hi. Does anyone know of any other providers, not listed in the current article, who allow HtB ISA transfers in? I'm particularly interested in providers that allow split ISAs. Cheers

www.halifax.co.uk/isas/cash-isas/help-to-buy-isa/

www.hsbc.co.uk/savings/products/help-to-buy-isa/#transfer

www.ybs.co.uk/savings/tax-free/help-to-buy-isa/.

www.bucksbs.co.uk/savings/help-to-buy-isa-62575/

www.theprogressive.com/savings/cash-isas/help-to-buy-isa

www.newcastle.co.uk/savings/cash-isas/help-to-buy-isa/

Good list - not sure if any of those are split isa providers bar the Newcastle (i.e. allowing you to pay into a help to buy and a cash isa in the same tax year)? The Progressive account is only available in NI in effect as its branch based.
Amongst split isa providers Nationwide allow transfers in - but I think their HTB isa rate is being cut to 1% from 1 May so not the best rate. Not sure about Natwest or Aldermore.
Newcastle BS pays a good rate of 2.3% still and allows transfers in but is only open to those in the north east as it is a branch based account.
https://www.newcastle.co.uk/savings/regular-saver/help-to-buy-isa/

masonic

margaretx9 said:

Amongst split isa providers Nationwide allow transfers in - but I think their HTB isa rate is being cut to 1% from 1 May so not the best rate.

Are you sure - that Nationwide will allow people to open a new HTB ISA for transfers, and that their rate is being cut?

I was under the impression Nationwide was no longer accepting applications to its HTB ISA even for transfers. As a current HTB ISA holder I've not been informed of any upcoming rate change and can find no information about it on the website.

MDMD

masonic said:

margaretx9 said:

Amongst split isa providers Nationwide allow transfers in - but I think their HTB isa rate is being cut to 1% from 1 May so not the best rate.

Are you sure - that Nationwide will allow people to open a new HTB ISA for transfers, and that their rate is being cut?

I was under the impression Nationwide was no longer accepting applications to its HTB ISA even for transfers. As a current HTB ISA holder I've not been informed of any upcoming rate change and can find no information about it on the website.

HTB rate is being cut along with every account they have 

https://www.nationwide.co.uk/-/media/MainSite/documents/products/savings/support/SMD008-terms-and-conditions-1-may-2020.pdf

masonic

MDMD said:

masonic said:

margaretx9 said:

Amongst split isa providers Nationwide allow transfers in - but I think their HTB isa rate is being cut to 1% from 1 May so not the best rate.

Are you sure - that Nationwide will allow people to open a new HTB ISA for transfers, and that their rate is being cut?

I was under the impression Nationwide was no longer accepting applications to its HTB ISA even for transfers. As a current HTB ISA holder I've not been informed of any upcoming rate change and can find no information about it on the website.

HTB rate is being cut along with every account they have 

https://www.nationwide.co.uk/-/media/MainSite/documents/products/savings/support/SMD008-terms-and-conditions-1-may-2020.pdf

Thanks, according to that there is no change on 1st May, but they are reducing as of 15th May. I suppose I can expect to be notified shortly.

As to the other point, although not so relevant in light of the rate cut, it doesn't look like Nationwide's HTB ISA is open to new applicants at all. https://www.nationwide.co.uk/support/support-articles/faqs/help-to-buy-isa-faqs

"We’re no longer offering Help to Buy: ISAs to new applicants. If you already have a Help to Buy: ISA with us, here are some frequently asked questions about managing it."

MDMD

masonic said:

MDMD said:

masonic said:

margaretx9 said:

Amongst split isa providers Nationwide allow transfers in - but I think their HTB isa rate is being cut to 1% from 1 May so not the best rate.

Are you sure - that Nationwide will allow people to open a new HTB ISA for transfers, and that their rate is being cut?

I was under the impression Nationwide was no longer accepting applications to its HTB ISA even for transfers. As a current HTB ISA holder I've not been informed of any upcoming rate change and can find no information about it on the website.

HTB rate is being cut along with every account they have 

https://www.nationwide.co.uk/-/media/MainSite/documents/products/savings/support/SMD008-terms-and-conditions-1-may-2020.pdf

Thanks, according to that there is no change on 1st May, but they are reducing as of 15th May. I suppose I can expect to be notified shortly.

As to the other point, although not so relevant in light of the rate cut, it doesn't look like Nationwide's HTB ISA is open to new applicants at all. https://www.nationwide.co.uk/support/support-articles/faqs/help-to-buy-isa-faqs

"We’re no longer offering Help to Buy: ISAs to new applicants. If you already have a Help to Buy: ISA with us, here are some frequently asked questions about managing it."

That is my understanding too. I will probably move mine to Halifax in May at 1.85% but stop paying in as I’ve been utilising the Nationwide flexibility to pay into the HTB without using any allowance (withdraw from another NW ISA and pay back into the HTB. I’m at £12k anyway.

margaretx9

masonic said:

margaretx9 said:

Amongst split isa providers Nationwide allow transfers in - but I think their HTB isa rate is being cut to 1% from 1 May so not the best rate.

Are you sure - that Nationwide will allow people to open a new HTB ISA for transfers, and that their rate is being cut?

I was under the impression Nationwide was no longer accepting applications to its HTB ISA even for transfers. As a current HTB ISA holder I've not been informed of any upcoming rate change and can find no information about it on the website.

Yes - sorry you are correct. You can make a transfer in from another cash isa to an open Nationwide HTB isa but you can't open a new HTB isa (i.e. can't transfer in from an existing HTB isa). I assumed they would as a split isa provider be flexible - but seemingly not!). Seems to be another example of their new improved caring, sharing, mutual approach!
https://www.nationwide.co.uk/support/support-articles/faqs/help-to-buy-isa-faqs#xtab:can-i-move-savings-from-another-isa
So does that mean Newcastle BS is the only split isa provider which permits you to open a help to buy isa and transfer into it as per the OP's question? Aldermore seems to adopt Nationwide's approach - not sure about RBS/Natwest. The other split isa providers like Paragon and Ford Money didn't offer the product anyway - although Paragon has a lifetime isa (paying 1.15%).