Help to Buy ISA guide

eeetee

Archi_Bald wrote: »

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.

Thankyou, Yes I understand that, I think due to the relatively small amount I'm dealing with the difference will be minimal. (I hope to have additional savings onwards) Can you confirm that the 'Transfer in' (i'm looking at Halifax) service would be for individuals who have used part of the current years' allowance, unlike myself who has not?

Archi_Bald

"Transfer in" service for ISAs should be used if you wish to retain the ISA protection for your funds. As you haven't paid anything into your old ISA this tax year, and don't have plans for a split ISA, it would probably be easier to just move the money as required yourself.

It could all be easier to understand if you took your £10,000 out of the old ISA altogether.
£10,000 at 1.5% earns £150 interest a year.
£10,000 at 4.5% earns £450 interest a year.
Assuming you save for 5 years, the difference would be at least £1,500. Compounded interest makes the difference larger year on year.
I find it hard to understand that people on the one hand chase the HTB bonus but settle for mediocre interest on the other.

Richard1405

The 450K limit is my problem too. Could it formally confirmed that the scheme is of no help in that circumstance - for example, there is no partial or limited benefit? Seems a bit odd to introduce a huge cliff edge at 250K or 450K, especially with no provisions for index linking the property bands.

MPeters1991

I am hoping to take advantage of the 'starter homes' which are offering 'a minimum of 20%' off the cost of a new home.

Does anybody know if the help to buy isa can be used in conjunction with this scheme?

tdsdrive

As the title says, I have already exchanged earlier this year on a flat, so I have already paid a deposit. Completion will be in 2017 (when I will arrange the mortgage), would I still be eligible for this scheme??

will2014

My virgin isa has 6k in it. I would like this new htb isa does anyone know if i can transfer the full 6k? or is it restricted to £1200?

jimjames

Richard1405 wrote: »

The 450K limit is my problem too. Could it formally confirmed that the scheme is of no help in that circumstance - for example, there is no partial or limited benefit? Seems a bit odd to introduce a huge cliff edge at 250K or 450K, especially with no provisions for index linking the property bands.

No, the limits are set. I guess they may be reviewed over time once the success or otherwise of the scheme has been seen.

jimjames

will2014 wrote: »

My virgin isa has 6k in it. I would like this new htb isa does anyone know if i can transfer the full 6k? or is it restricted to £1200?

Have you read the scheme rules to get the figure of £1200? Any reason why those wouldn't apply?

If you transfer £1200 to the HTB ISA and withdraw the rest you'll be able to get 5% on it in current accounts which I'm sure is far better than your ISA rates.

MARTYM8`

MPeters1991 wrote: »

I am hoping to take advantage of the 'starter homes' which are offering 'a minimum of 20%' off the cost of a new home.

Does anybody know if the help to buy isa can be used in conjunction with this scheme?

Yes you will be able to use the help to buy isa to fund the purchase of a property under the starter homes scheme – assuming you can find a development that is using this. The limit for both is the same - £250k outside and £450k in London.

I assume you are under 40 as that is a requirement of the starter homes scheme. It also only applies to new builds.

Not sure what the government’s plans are to help the over 40s still renting – the help to die scheme?!!!!

rlwise

Hi there, sorry if this has been covered, it's easy to get lost in 14 pages!
If we are hoping to buy within a year, would it make more sense to open the Virgin 3% isa which pays interest monthly opposing to Halifax 4% isa which pays out monthly?

Just another one too! In regards to having one ISA at a time, if I transfer funds from 0.25 cash isa and close it down, does that mean I can open a general HTB isa?
Thank you in advance!