Help to Buy ISA guide

Nosbor23

colsten wrote: »

You have indeed missed lots, and you are in the right place for ideas to improve your savings position. Plase do read through this thread.

I have already read through the guide and the thread, was just finding it quite difficult to figure out what is best for my situation as there is a lot of general advice on the 20 something pages and I found it a bit overwhelming.

I was just hoping for some more specific advice/or specific posts I could go back and look at.

monayuen1

Can anyone please tell me if you can apply for the bonus on a Help to Buy ISA if you are purchasing a house entirely using cash savings, and NOT obtaining a mortgage?

Archi_Bald

The property you are buying must be mortgaged in order to be eligible for the government bonus. - See more at: https://www.helptobuy.gov.uk/help-to-buy-isa/faq/#sthash.QzdJ2Omu.dpuf

Abs01

Halifax made it all very difficult, I transferred the £1000 from another ISA then set up a standing order for the £200 as this is the only way allowed but it failed twice, Halifax could not tell me why, I worked out myself it was because they had given me a random £4 of interest so I had to change stranding order to £196, the second standing order then failed and again halifax could not tell me why but I assumed it was because the first amount was finally paid on the 7th December after trying from the 2nd Dec and then the 2nd payment was made on the 7th Jan and failed because had not been a full month between payments even though Martin Lewis says you could pay in end of Dec then Jan then start of Feb you won't be able to with halifax, it has to be the same date every month or payment will fail, a lot of stress and hassle and looks like I won't benefit from this as Martin Lewis suggested I would as sale is going through and cant get the bonus until 9th Feb if I can visit the bank on that day to close the ISA as has to be in person then wait for a letter to give to solicitors, I wonder how long that will take! Then hope my solicitor will register to be able to get the government Bonus but most solicitors have not done this and don't plan to so not looking very easy or possible to benefit from this scheme but hopefully will be better in the future for other first time buyers especially as we have to pay stamp duty again.

Rich2808

Archi_Bald wrote: »

The property you are buying must be mortgaged in order to be eligible for the government bonus. - See more at: https://www.helptobuy.gov.uk/help-to-buy-isa/faq/#sthash.QzdJ2Omu.dpuf

They should really call it the help to borrow and make banks more money ISA.

Why should someone on a low income buying a flat in Barnsley for £20k in cash cos his gran left him money in her will not be deemed worthy of government help via the bonus but a first time buyer on £100k buying a £450k flat in London is. The former is actually poorer.

Answers on a postcard!

eskbanker

Assuming suitable credit status, etc, there's nothing to stop a cash buyer from taking out a small mortgage that can be repaid quickly if the cost of doing so is outweighed by the HTB bonus....

Rich2808

eskbanker wrote: »

Assuming suitable credit status, etc, there's nothing to stop a cash buyer from taking out a small mortgage that can be repaid quickly if the cost of doing so is outweighed by the HTB bonus....

Yes - but why should they have to? That would cost money effort and hassle.

My example clearly highlights two cases where the person who needs less help the most as they are potentially on a lower income is ruled out.

Archi_Bald

Your example makes no sense on various levels and you are just having a rant.

The H2B ISA has absolutely nothing to do with people's income, or how they came by the money for their house purchase. Whilst you could argue whether this ISA should be means tested, it is not, and the money is probably better used to support first time buyers rather than in support of bureaucracy. As a by the by, if the Barnsley person has the same qualifications and aspirations as the London person, there is no reason why the Barnsley person shouldn't also earn £100K. Mind you, I don't think you'd find very many first time buyers on a £100K salary, and who would also save up for 5 years to get a £3K bonus.

It is also unrealistic to compare house prices (and living costs) in Barnsley and in London. People have a need for housing in either place but one is more expensive than the other and there is nothing that will equalise the prices across the UK (short of some delusional communist government).

Everyone who is eligible and can comply with the rules of the H2B ISA is free to take one out if they so desire. The same rules apply to all, so there is no unfairness in sight, regardless of how much you rant about it.

Rich2808

Archi_Bald wrote: »

Your example makes no sense on various levels and you are just having a rant.

The H2B ISA has absolutely nothing to do with people's income, or how they came by the money for their house purchase. Whilst you could argue whether this ISA should be means tested, it is not, and the money is probably better used to support first time buyers rather than in support of bureaucracy. As a by the by, if the Barnsley person has the same qualifications and aspirations as the London person, there is no reason why the Barnsley person shouldn't also earn £100K. Mind you, I don't think you'd find very many first time buyers on a £100K salary, and who would also save up for 5 years to get a £3K bonus.

It is also unrealistic to compare house prices (and living costs) in Barnsley and in London. People have a need for housing in either place but one is more expensive than the other and there is nothing that will equalise the prices across the UK (short of some delusional communist government).

Everyone who is eligible and can comply with the rules of the H2B ISA is free to take one out if they so desire. The same rules apply to all, so there is no unfairness in sight, regardless of how much you rant about it.

I am perfectly entitled to comment as a taxpayer on how taxes are used.

Its called a help to buy isa - yet as this thread and a myriad of others on here illustrate it has been made excessively confusing and complicated by bureaucrats.

If only they could have kept it simple - the mortgage requirement being one of many confusing aspects as well as not being able to open a cash and a HTB isa in the same year when they could have classified it as a different category of product as with stocks and shares. And then different thresholds in London - is there a Mayoral election on - when prices in many areas outside London are far above those in many of the outer boroughs.

Of course when Osborne became Chancellor average house prices in London were only £350k but now are over £500k in no small part to his policies including FLS and QE.

Maybe the best way for him to help first time buyers is to stop trying to help them - we might actually have cheaper housing then.

ash_scotland88

colsten wrote: »

It would help if you knew whether your £9K is in an ISA or a non-ISA account......regardless though, you cannot put more than up to £200 a month into a HTB ISA, plus up to £1,000 in your first month.

I must have said this a few hundred times now: there is no point for 99.99% of all people to have a normal cash ISA. Use an HTB ISA, and save the rest in non-ISA accounts that pay best interest.

.

It's a Halifax instant saver.
So looks like I'll be opening one up then. (sorry, made the post and didnt admittedly read all the forum)
I also see someone else has said that each payment has to be a month apart instead of in a calendar month. Knowing the cut off date is the 25th of each month (I think) If i was to open an account on the 24th I then couldn't have the standing order set up to go out on the 1st?