Help to Buy ISA guide

jimjames

rlwise wrote: »

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!

I'd go for whatever account pays the best interest personally, when interest is paid is irrelevant.

Transferring any ISA paying0.25% would be beneficial and if it's got more than £1200 in then I'd put the rest of the money outside a cash ISA where you'll get up to 5% interest.

MARTYM8`

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.

I am sure these figures will be kept under review. The Chancellor can of course change the scheme or pull it at any time in his budget.

There inevitably have to be limits – its perhaps more of an issue though for those in the south east outside London where prices can be higher than in the cheaper parts of London.

Indeed if as a first time buyer you can afford to pay over £450,000 – 18 times the national average wage – for your first property perhaps you don’t actually need a £3k taxpayer handout to help you buy?! Not criticising anyone who claims their entitlement – just saying!

Simian_2

Last year my Mum died and I was made a trustee of her will meaning that a percentage of my parents house is owned by a trust which I am a joint member of along with my Dad and brother. I technically won't own the house until my Dad dies. However, because of the trust do I count as a home owner already in the eyes of the Help to Buy ISA scheme? The T&Cs I've read are rather vague so I'd appreciate insight or knowledge from others in the know.

steved28

can our 18 year old daughter open her own help to buy isa and then us pay into it or does the monthly payment need to come from her account?

photalog

I don't qualify as a first time buyer as i've owned a home that i've now sold (making zero profit hence being on here..). If we open a HTB Isa in my wife's name and i continue saving on my own, can we then use the HTB ISA money & government money combined with my own savings to get a joint mortgage? Or are there rules that the HTB ISA money can't be used in combination with a non first time buyer to buy a property?

Strummer22

steved28 wrote: »

can our 18 year old daughter open her own help to buy isa and then us pay into it or does the monthly payment need to come from her account?

The money has to come from her, so if you want to help her out, transfer the money to her current account.

Be aware she can technically do what she likes with it then - but if she's not daft she'll put it in her HTB ISA

Strummer22

photalog wrote: »

I don't qualify as a first time buyer as i've owned a home that i've now sold (making zero profit hence being on here..). If we open a HTB Isa in my wife's name and i continue saving on my own, can we then use the HTB ISA money & government money combined with my own savings to get a joint mortgage?

Yes, you can do that.

MARTYM8`

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.

Buy in a cheaper part of London?

£450k would get you a five bedroom house in parts of east London?

Gwinike

Hi,

Can anyone help me, please? My husban and I have a joint account, where we have a cash ISA, which we opened this tax year and we saved about 4000 Pounds. Now, we would like to have a Help to buy Isa each. So, is it possibe to have these with different providers? For example he would have a split one with Aldemore and I would have a normal one with a bank who pays more interest? How to transfer these money separately? We want to buy a house in about 1,2 year. Can we use my bonus as well if just he will apply for the mortgage, because I'm self employed and I won't have 3 years to prove my incomes.
Thank you

MARTYM8`

Gwinike wrote: »

Hi,

Can anyone help me, please? My husban and I have a joint account, where we have a cash ISA, which we opened this tax year and we saved about 4000 Pounds. Now, we would like to have a Help to buy Isa each. So, is it possibe to have these with different providers? For example he would have a split one with Aldemore and I would have a normal one with a bank who pays more interest? How to transfer these money separately? We want to buy a house in about 1,2 year. Can we use my bonus as well if just he will apply for the mortgage, because I'm self employed and I won't have 3 years to prove my incomes.
Thank you

Yes if you are both first time buyers and buying the property jointly you can both have help to buy isas – so save £2,400 in month one and then £400 per month thereafter together. This assumes of course you are within the property price limits - £250k outside London and £450k in the 33 London boroughs.

You can have a split isa with Nationwide, Aldermore, Natwest and Newcastle BS. However the Halifax pays the best HTB isa rates – 4%.

Given the new rules on being able to withdraw isa funds in year and replace them I would suggest you simply close the isa, withdraw the £4k and move it to a current account. You can then open a help to buy isa with Halifax (or whoever) and pay £1200 each (first month’s instalment) into this. Assuming you pay in amounts in Jan, Feb, March and the first week of April (e.g. by standing order) you will be able to invest the full £4k in a HTB isa by April (i.e. £1200 x 2 in December plus 4 months of 2x£200 from Jan to 5 April)