New Post Advanced Search
Important update! We have recently reviewed and updated our Forum Rules and FAQs. Please take the time to familiarise yourself with the latest version.

Help to Buy ISA guide

edited 30 November -1 at 12:00AM in ISAs & Tax-free Savings
2.3K replies 351.1K views
1220221222223224226»

Replies

  • bowlhead99bowlhead99 Forumite
    12.1K posts
    Part of the Furniture 10,000 Posts Name Dropper Post of the Month
    ✭✭✭✭✭
    jaymAFC said:
    I've got an HTB ISA & am placing offers on houses trying to beat the stamp-duty break closing in March. I want to purchase a place (on my own) for more than the £250,000 threshold. 
    Ok, so assuming the property is outside London, you won't be able to get a HTB ISA bonus, based on the £250k property limit maximum which has been in place since the HTB ISA was launched five years ago, two thousand posts earlier on this thread.
    I was recently informed I am not eligible for government support with a purchase price at £350,000

    You'd have been informed of that whenever you read the product rules at any point over the last five years.
    Now I am thinking of changing my HTB ISA into a Lifetime ISA to become eligible for government assistance, but I read that you need to leave your funds in the account for 12months
    That's correct. If you're already making offers, the product won't be any use to you to buy a property with the bonus because you can't do that within the first 12 months of having the product.

    If you had opened the LISA a year ago you'd have been fine. If you'd have opened it in the 2017/18 tax year you could have contributed at least £16k into it and had £4k of bonuses by now. But as you didn't, you haven't, and it's too late to fix unless you're willing to postpone buying for 12 months to get a couple of thousand of bonus.

    Surely I can use the start date of my HTB ISA (years ago) to ensure I qualify? Or is it as black and white as the start date of the LISA opening? 

    It's black and white. They're different products and you haven't had a LISA for 12 months. There was a limited window of time to transfer existing HTB balances into the new LISA product when it was launched in 2017/18, but they're otherwise unconnected. 

    All very disappointing. 
    Thanks for your assistance. 
    No problem. Next time you're looking to get free money towards something important (property purchase, retirement, whatever), read the rules before pinning your hopes on it, to avoid disappointment.
  • jamestollyjamestolly Forumite
    1 posts
    First Post
    MoneySaving Newbie
    Hi there. Im in the process of buying a flat and have saved up 11,600 into the account. I believe it may complete just before my interest in the account is due, for which I recieved £200 last year. Is it worth delaying until the interest comes in or will i get the interest even if the money is transferred out of the account before the interest date?
  • eskbankereskbanker Forumite
    16K posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭
    Hi there. Im in the process of buying a flat and have saved up 11,600 into the account. I believe it may complete just before my interest in the account is due, for which I recieved £200 last year. Is it worth delaying until the interest comes in or will i get the interest even if the money is transferred out of the account before the interest date?
    If you close the account before the scheduled interest payment date, you'll get your interest on a pro rata basis, i.e. if you close it a month before scheduled interest date, they'd pay out at 11/12ths of the annual rate.
  • jaymAFCjaymAFC Forumite
    2 posts
    First Post
    MoneySaving Newbie
    jaymAFC said:
    I've got an HTB ISA & am placing offers on houses trying to beat the stamp-duty break closing in March. I want to purchase a place (on my own) for more than the £250,000 threshold. 
    Ok, so assuming the property is outside London, you won't be able to get a HTB ISA bonus, based on the £250k property limit maximum which has been in place since the HTB ISA was launched five years ago, two thousand posts earlier on this thread.
    I was recently informed I am not eligible for government support with a purchase price at £350,000

    You'd have been informed of that whenever you read the product rules at any point over the last five years.
    Now I am thinking of changing my HTB ISA into a Lifetime ISA to become eligible for government assistance, but I read that you need to leave your funds in the account for 12months
    That's correct. If you're already making offers, the product won't be any use to you to buy a property with the bonus because you can't do that within the first 12 months of having the product.

    If you had opened the LISA a year ago you'd have been fine. If you'd have opened it in the 2017/18 tax year you could have contributed at least £16k into it and had £4k of bonuses by now. But as you didn't, you haven't, and it's too late to fix unless you're willing to postpone buying for 12 months to get a couple of thousand of bonus.

    Surely I can use the start date of my HTB ISA (years ago) to ensure I qualify? Or is it as black and white as the start date of the LISA opening? 

    It's black and white. They're different products and you haven't had a LISA for 12 months. There was a limited window of time to transfer existing HTB balances into the new LISA product when it was launched in 2017/18, but they're otherwise unconnected. 

    All very disappointing. 
    Thanks for your assistance. 
    No problem. Next time you're looking to get free money towards something important (property purchase, retirement, whatever), read the rules before pinning your hopes on it, to avoid disappointment.
    Thanks. Brutal honesty. I am still able to transfer my HTB to a LISA - the only issue is the 12month wait for the purchase. I was hoping some establishments would allow me to carry over the duration I've had my HTB into my LISA, thus negating the 12month wait.... wishful thinking I guess. 
    Raised a complaint with the bank about not being made aware of £250,000 threshold, but it was quickly rebuffed on account of the T&Cs being in place. Bummer! 
  • AlexlandAlexland Forumite
    7.2K posts
    1,000 Posts Third Anniversary Photogenic Name Dropper
    ✭✭✭✭
    jaymAFC said:
    I am still able to transfer my HTB to a LISA - the only issue is the 12month wait for the purchase.
    You can only transfer up to £4k of the HTB ISA into a new LISA each tax year although there was a transitional arrangement where in the first year LISAs were available they allowed a transfer of the full HTB ISA value even if it exceeded £4k. The 12 month rule is set by government policy so the same across all providers.
  • Important update! We have recently reviewed and updated our Forum Rules and FAQs. Please take the time to familiarise yourself with the latest version.
  • Emzb91Emzb91 Forumite
    1 posts
    First Post
    MoneySaving Newbie
    I have just started looking at Help To Buy houses outside the London area, I realise the cap is £200,000 , however the houses I am looking at are around £330,000. I just want to check how this works please? 
  • edited 2 December at 11:09AM
    AlexlandAlexland Forumite
    7.2K posts
    1,000 Posts Third Anniversary Photogenic Name Dropper
    ✭✭✭✭
    edited 2 December at 11:09AM
    Emzb91 said:
    I have just started looking at Help To Buy houses outside the London area, I realise the cap is £200,000 , however the houses I am looking at are around £330,000. I just want to check how this works please? 
    The HTB ISA cap outside London is £250k so if you have this obsolete product you would just withdraw your money without getting a bonus to use towards the £330k purchase. That doesn't stop you taking advantage of other parts of the Help To Buy scheme which I believe are still running although the people in the House Buying forum would be better placed to answer questions.
    If you can wait a year before buying you might want to look at the Lifetime ISA which goes up to £450k nationwide.
  • caroldhillcaroldhill Forumite
    1 posts
    First Post
    MoneySaving Newbie
    Can a grandparent pay into a grandchild’s help to buy ISA
  • edited 4 December at 12:50AM
    eskbankereskbanker Forumite
    16K posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭
    edited 4 December at 12:50AM
    Can a grandparent pay into a grandchild’s help to buy ISA
    Yes, subject to any restrictions at individual product level (I could be wrong but seem to recall some only allowed one payment per month, for example).
Sign In or Register to comment.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support