Help to Buy ISA guide

colsten

MARTYM8` wrote: »

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.

These new rules do not come into effect until the new tax year. Nonetheless, I agree with your suggestion that they should just close their existing ISA, put the money into current accounts (such as 2 TSBs which pay 5%), and then starting 2 HTB ISAs.

Gwinike

Thank you. But, if want to save more than 400 every month, where to save the rest? This is why I was thinking of the split ISA and a normal one for myself.

Camshaft_SG1

tdsdrive wrote: »

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??

Have the same issue (exchanged contracts, but not completed yet) and have received conflicting views from the Bank and the solicitors. Appreciate it if any one has any guidance.

jimjames

Gwinike wrote: »

Thank you. But, if want to save more than 400 every month, where to save the rest? This is why I was thinking of the split ISA and a normal one for myself.

Why would you want an ISA paying 1% when you can get 5% or 6% on that additional £200 outside an ISA?

MARTYM8`

colsten wrote: »

These new rules do not come into effect until the new tax year. Nonetheless, I agree with your suggestion that they should just close their existing ISA, put the money into current accounts (such as 2 TSBs which pay 5%), and then starting 2 HTB ISAs.

Yes – sorry my mistake.

Given they have a £15,240 allowance each – over £30k in total – and assuming they aren’t planning any other isa savings (cash or stocks and shares) they would only lose £4k of this £30k allowance by withdrawing now so could still pay in over £26k this year within the rules to an isa.

xannus

Just wondering if a non-first time buyer could still open the halifax HTB ISA just for the 4% interest and obviously not getting any bonus at the end of it?

colsten

xannus wrote: »

Just wondering if a non-first time buyer could still open the halifax HTB ISA just for the 4% interest and obviously not getting any bonus at the end of it?

You could if you were happy to

1. make a false declaration when you apply for the ISA (i.e. that you are an FTB)
2. settle for a lower interest rate than you can get in five or six other accounts (Regular Savers / Monthly Savers)

xannus

colsten wrote: »

You could if you were happy to

1. make a false declaration when you apply for the ISA (i.e. that you are an FTB)
2. settle for a lower interest rate than you can get in five or six other accounts (Regular Savers / Monthly Savers)

I'm not happy about making a false declaration, I was hoping that anyone might be able to open the account as long as they weren't gaining from any bonus payments, so it's is a shame they don't allow this. But just out of curiosity, what consequences may occur from this and do they even check up on whether your a FTB or not? As for the interest, I would be happy with the 4% as I'm already with Halifax and don't want to have another online banking account with anyone else (already have 3) so this would be the best I could get from the 3 banks I'd consider

MARTYM8`

xannus wrote: »

I'm not happy about making a false declaration, I was hoping that anyone might be able to open the account as long as they weren't gaining from any bonus payments, so it's is a shame they don't allow this. But just out of curiosity, what consequences may occur from this and do they even check up on whether your a FTB or not? As for the interest, I would be happy with the 4% as I'm already with Halifax and don't want to have another online banking account with anyone else (already have 3) so this would be the best I could get from the 3 banks I'd consider

They probably won't check - but you would still have signed a false declaration. And given you bank with Halifax they might well have picked up a mortgage possibly on previous credit checks when you opened your current account. You could end up with CIFAs notices on your credit file. Highly unlikely - but you never know!

Its not really worth it for a 4% regular saver isa which only allows a £200 a month investment!

Bucks bs has a 2% regular saver isa if that is what you want - anyone can apply for that.

http://www.bucksbs.co.uk/investments/product_details.asp?id=13

colsten

xannus wrote: »

I'm not happy about making a false declaration..... But just out of curiosity, what consequences may occur from this

May I suggest you read the T&Cs. Then consider whether you'd want to risk to have all your Halifax accounts closed, and also whether you'd want to risk that HMRC/their administrators (UKAR) know that you opened an ISA you are not entitled to. All that for a scheme that doesn't even pay you the best possible interest.

MARTYM8` wrote: »

Bucks bs has a 2% regular saver isa if that is what you want - anyone can apply for that.

Why would anyone want a 2% ISA when they can get a 6% RS?