Help to Buy ISA guide

mikepwilkins

Hi, is the £12k saving limit the same in London even if buying a property over £250k?

badger09

mikepwilkins said:

Hi, is the £12k saving limit the same in London even if buying a property over £250k?

There is no £12k savings limit. BUT the government will pay a maximum bonus of £3k.

Middle_Sister

Okay. This is what I am thinking of doing. Can you please advise me if its right.
I plan to transfer £4k from my £12k HTB ISA either into a S&S LISA or a cash LISA. I'll keep adding £200 into my HTB ISA and just use it as a saving vehicle as the rate is pretty good then next tax year transfer another £4k across into my LISA and the same the following year.  Then I plan to put £20k into a S&S ISA each tax year starting now.

eskbanker

Middle_Sister said:

Okay. This is what I am thinking of doing. Can you please advise me if its right.
I plan to transfer £4k from my £12k HTB ISA either into a S&S LISA or a cash LISA. I'll keep adding £200 into my HTB ISA and just use it as a saving vehicle as the rate is pretty good then next tax year transfer another £4k across into my LISA and the same the following year.  Then I plan to put £20k into a S&S ISA each tax year starting now.

Nobody can say if it's 'right' but it's certainly possible and legitimate.  What are you hoping to achieve, in terms of if/when you'll be looking to get onto the property ladder and when you're likely to need each of your pots of money?  In general, stick to cash-based products for anything needed within the next five years....

margaretx9

stehouk said:

Santander are reducing the htb isa (issue 1) rate down from 4% to 2.75% effective from 22nd may 2020..... gutted as mine was 4.25%.

Nationwide - that caring sharing mutual that works for its members! - is reducing its HTB isa rate to only 1% next month from the current 2.5%.
So look on the upsides!

eddie7612

badger09 said:

mikepwilkins said:

Hi, is the £12k saving limit the same in London even if buying a property over £250k?

There is no £12k savings limit. BUT the government will pay a maximum bonus of £3k.

The bonus is still max £3k but you can claim it when buying a property worth up to £400k in London.

Alexland

eddie7612 said:

The bonus is still max £3k but you can claim it when buying a property worth up to £400k in London.

£450k in London
https://www.helptobuy.gov.uk/help-to-buy-isa/who-is-eligible/

Lorraine1975

My son has £6.600 in a junior ISA which has now matured, can he transfer his directly into his help to by ISA ??

eskbanker

Lorraine1975 said:

My son has £6.600 in a junior ISA which has now matured, can he transfer his directly into his help to by ISA ??

No, it isn't possible to transfer substantial lump sums into a HTB ISA, he's constrained by its £200 monthly contribution limit....

Alexland

Also worth mentioning that the Junior ISA will have matured into an adult ISA now and he can only contribute into one Cash ISA each tax year.