Help to Buy ISA guide

RobSurreyUK

Is there any likelihood of the property value bracket being moved?

I live and work in the rather expensive Surrey (Guildford). Get to save very little due to the extortionate rental prices here (Currently paying £1495 pcm + Oil and electric) and there is barely even a 1 bed studio apartment available for £250k! (so this would be a huge help)

Knowing that the property value I would be looking at is a minimum £500-£600k just to get an acceptable 2-3 bed with a kitchen large enough to extend your arms in, is it worth getting a help to buy ISA in the hope that it will one day apply to property prices in the real world?

slt15

Can you use the help to buy isa for a deposit for the morgage for your council house

colsten

RobSurreyUK wrote: »

Is there any likelihood of the property value bracket being moved?

There is nothing about indexation in the currently published information. May be start lobbying your MP about it now? https://www.writetothem.com/

slt15 wrote: »

Can you use the help to buy isa for a deposit for the morgage for your council house

can't see why not but check for yourself http://www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work

eeetee

Been reading through the guide and posts, would someone be kind enough to clarify: I currently have around £1K in a Skipton BS ISA paying around 1.5%, so I would close this account, and drip feed it into which ever H2B ISA i open at a rate of £1200 a month, or can i transfer the balance, as if i was transferring to a new ISA? If it's the former, it would take me around a year to transfer the balance? I should add that I have not added to my current ISA in this current tax year. Unless I am missing something (which is entirely possible), for one to be awarded the maximum bonus on £12k, it would take 5 years of saving?
(year 1: £3400, year 2 £5800, year 3 £8200. year 4 £10600, year 5 £13000)

Archi_Bald

If you have not added to a cash ISA this year, you can start your HTB ISA straight away, whether it's a split or a stand alone one. In the years you are contributing to the HTB ISA, you cannot also contribute to a cash ISA unless your HTB ISA is with one of the providers that provides split ISAs.

You have various options on what to do with your existing ISA, for example:

• if you go for a split ISA, transfer it in full to the new provider. You can then move funds from it to the HTB ISA - £1,200 in month 1, £200 max in all subsequent months.
• if you don't have a split ISA: transfer the old ISA in part or fully to another cash ISA. You will not be able to contribute further to that ISA
• withdraw the entire sum into accounts that pay better interest than cash ISAs

You will not get the top HTB ISA rate in a split ISA.

Finally, you are right, it will take at least 55 months to save enough into the HTB ISA if you aim to get the full £3,000 bonus.

Richard1405

Does this mean the scheme is of no help to those who may have to pay more than 450K for a property

RobSurreyUK

Richard1405 wrote: »

Does this mean the scheme is of no help to those who may have to pay more than 450K for a property

Specifically:

Outside of London: £250,000
In London: £450,000

And therein also lies my problem.

Futuristic

RobSurreyUK wrote: »

Specifically:

Outside of London: £250,000
In London: £450,000

And therein also lies my problem.

Also a problem for me too, I expect to be in a position in the next 5 years to be able to purchase a house exceeding the outside london limit. Regardless 4% of tax free interest is good enough reason for me to get htb isa.

eeetee

Archi_Bald wrote: »

If you have not added to a cash ISA this year, you can start your HTB ISA straight away, whether it's a split or a stand alone one. In the years you are contributing to the HTB ISA, you cannot also contribute to a cash ISA unless your HTB ISA is with one of the providers that provides split ISAs.

You have various options on what to do with your existing ISA, for example:

• if you go for a split ISA, transfer it in full to the new provider. You can then move funds from it to the HTB ISA - £1,200 in month 1, £200 max in all subsequent months.
• if you don't have a split ISA: transfer the old ISA in part or fully to another cash ISA. You will not be able to contribute further to that ISA
• withdraw the entire sum into accounts that pay better interest than cash ISAs

You will not get the top HTB ISA rate in a split ISA.

Finally, you are right, it will take at least 55 months to save enough into the HTB ISA if you aim to get the full £3,000 bonus.

So essentially, as I haven't added to my existing CashISA this year, I can leave it active, with current balance, open the H2B ISA and month by month transfer into it?

Archi_Bald

eeetee wrote: »

So essentially, as I haven't added to my existing CashISA this year, I can leave it active, with current balance, open the H2B ISA and month by month transfer into it?

That's another option, albeit not the one that earns you the most interest as you should be able to get at least 4% interest on your entire £10K, not just on the small amount you can feed into the HTB ISA.