Help to Buy ISA guide

Archi_Bald

Rich2808 wrote: »

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

you are indeed, as is everyone else

Rich2808 wrote: »

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.

The H2B ISA isn't excessively confusing or complicated by bureaucrats. You need rules for everything that involves more than one person, to avoid misunderstandings, and to clearly define the rules of engagement. The real problem is that, as has been demonstrated in absolute abundance in this thread, that scores of potential H2B ISA holders simply cba to educate themselves. Not only do they not look at the information posted by MSE and by the Treasury, they also totally ignore that their fellow prospective H2B ISA savers may already have asked the same question. Many people just want to be spoonfed, and when they don't get it, they resort to what they think is their trump card - blaming others for making things too complicated. They are kidding themselves that way. Let's not forget, with very few exceptions, we are talking about adults who want to buy a property, not children or juveniles, but adults who intend to commit to hundreds of thousands of pounds to buy a property for themselves. If they can't even get to grips with something as simple as the H2B ISA, how do they cope with their house purchase? Their job? Their life? Their children? Their future?

Rich2808 wrote: »

If only they could have kept it simple

you are still missing the point that it is simple. Multiple pre-requisites aren't making things complicated. They are just a tick list. Tick them all, you qualify. Can't tick them all, you don't qualify. There is a FAQ that answers 99% of all the questions that have been asked on here (ignoring politically motivated ones), and there is a government website which has a lot more details for those who want it.

Rich2808 wrote: »

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.

yawn. London house prices have been higher than elsewhere in the country ever since before Victoria met Albert, and it's nothing to do with whether London has a Mayor.

Rich2808 wrote: »

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.

You could try offering Mr. Osborne your consultancy, as you clearly know so much better than him and all his existing consultants. Spare a thought for me when you eventually become chancellor yourself because I gave you the idea to get involved in actually taking responsibility for a budget of several hundred billion rather than nitpick away on what is a non-issue.

jimjames

Archi_Bald wrote: »

If they can't even get to grips with something as simple as the H2B ISA, how do they cope with their house purchase? Their job? Their life? Their children? Their future?

It does make you wonder. Owning a house is complicated compared to saving the money to buy it in the first place. Just hope that the people asking the questions are adequately aware of their requirements before they actually sign for the mortgage.

jonnymufc83

I have a strange scenario.

I've read through most of the posts and not seen this. I moved in with my then girlfriend who was a home owner. We got married and sadly she passed last year. I have never been put on the mortgage, nor have I ever bought a home. I have enquired with several different sources and want to know can if I can apply for the HTB ISA? I will inherit the house once probate is finalised?

Can anyone answer this for me?

POPPYOSCAR

jonnymufc83 wrote: »

I have a strange scenario.

I've read through most of the posts and not seen this. I moved in with my then girlfriend who was a home owner. We got married and sadly she passed last year. I have never been put on the mortgage, nor have I ever bought a home. I have enquired with several different sources and want to know can if I can apply for the HTB ISA? I will inherit the house once probate is finalised?

Can anyone answer this for me?

I can see no reason why not.


Although once you have actually inherited the house you will not get the bonus on buying a property, but still worth doing for the good interest rate.

Archi_Bald

POPPYOSCAR wrote: »

Although once you have actually inherited the house you will not get the bonus on buying a property, but still worth doing for the good interest rate.

there are better interest rates than those available with HTB ISAs.

POPPYOSCAR

Archi_Bald wrote: »

there are better interest rates than those available with HTB ISAs.

Who is offering more than 4%?

Archi_Bald

FD, HSBC, M&S, Nationwide and TSB.

beanie2468

colsten wrote: »

This correct, with the proviso that if your HTB ISA is with Halifax, they will only allow £1,000 initial deposit, before the 25th of the month in which you open the account. You can also deposit another £200 in that first month.

In your shoes, as you now can't bust the 2015-16 ISA allowance with the HTB ISA, I wouldn't faff about with ISA transfers. Just close the ISA down and then start your HTB ISA.

Thank you - I'm a bit confused though. You say not to faff with transfers, but I thought if I wanted to open a HTB this year I would have to do a partial transfer from my Cash ISA, rather than closing it and making the deposit myself.

Or do you mean wait until April to open the HTB to avoid having to transfer?

colsten

As you have only £8K in your ISA, the easiest for you is to simply close it and put the money into a couple of current accounts which pay you more interest than your ISA. It is perfectly within the ISA rules to do this once (and once only) in a tax year. This is way simpler than first doing a partial transfer and then closing the ISA. It also avoids being given daft information from bank staff who are unfamiliar with ISA rules.

Once the ISA is closed, you can immediately start your HTB ISA. You do not have to wait until April

jimjames

beanie2468 wrote: »

Thank you - I'm a bit confused though. You say not to faff with transfers, but I thought if I wanted to open a HTB this year I would have to do a partial transfer from my Cash ISA, rather than closing it and making the deposit myself.

Or do you mean wait until April to open the HTB to avoid having to transfer?

You'll find that many people on here have a much better knowledge of ISA rules than many bank staff. In addition here you get to find out the best place for your money, not just the option that the bank you have asked, want to offer you from their own product range.