Help to Buy ISA guide

bexybest

Hi, I have recently reserved a new-build property and am meant to exchange contracts in a few weeks. I have spoken to my solicitor and advised that I wish to use my HTB ISA on 1st Feb which would give me a government bonus of £400.

She is under the impression that they cannot apply for the bonus until completition - which isn't until May 2016. She explained that this means I will accrue a larger bonus which I am happy with.

BUT she is asking that the deposit be paid to them in a few weeks (I do have the funds in my current account to cover this luckily) and then in May I will have accrued say £3000 in my HTB ISA. I asked if this money would come back to me via a refund from my original deposit money, or off my mortgage, and she seemed to think neither.

If anyone can shed any light as to when in the new build process the bonus should be applied for that would be great. Being a new process I'm not sure the solicitors know themselves!

colsten

Point your Solicitor to this website: https://www.helptobuyisaadmin.org.uk/conveyancers/the-scheme

NB. You won't have £3,000 in your HTB ISA by May. The max you can have in it is £2,200.

09lansaunders

If I transferred my current year normal cash ISA to a split account (where you can contribute to both the help to buy and a corresponding normal cash ISA to enable you to use your entire yearly allowance) can I then fund the help to buy ISA monthly with my already held ISA cash? As in I wouldn't needed to contribute any more outside money but can just move £200 monthly from my normal cash ISA to the help to buy side without using up any more allowance? If this is possible could I then continue to do this next tax year then also open a 16/17 normal cash ISA elsewhere?

colsten

You probably can - ask your provider whether it's possible and how it's done.

Usual question I ask so many people (and almost nobody has a good answer): why would you even have a normal cash ISA when you can earn so much more interest in other accounts? especially when, from April 6 onwards, you have a savings interest allowance of at least £500, more likely £1,000 a year?

hevside

There is definitely some clarification required her. If you read the conveyancing guidance from the helptobuyisaadmin.org.uk site in Para 8.4 (C) clearly states that "The Bonus cannot be used for a deposit".


On this site at para 8 it says "The solicitor then uses the letter to apply online for the government bonus, which they can use along with your Help to Buy ISA funds (plus any other savings) as your deposit for your first home. "


These clearly contradict each other. Any suggestions?

colsten

I would go by the information provided on the official government website, not any third party one.

helloHTB

The 20k wont be there long as it will be used as a deposit for a house within the next few month hopefully.... but I would like somewhere to save the 200-400 a month in addition to the 20k i have and in addition to the 200 i pay into the HTB

Thanks
Amy

amavison91

Hey,

Just wondering....
Do you need to pay the £200 per calendar month or is it 30/31 days?

I only ask because my partner made first payment on 14th dec and he hasnt been able to add anymore this month...so he has waited until today...
He is paying in weekly as he gets paid weekly but if it is calendar month he will be short of the 200 and will lose out on the bonus.

Help please!!

eskbanker

amavison91 wrote: »

Hey,

Just wondering....
Do you need to pay the £200 per calendar month or is it 30/31 days?

I only ask because my partner made first payment on 14th dec and he hasnt been able to add anymore this month...so he has waited until today...
He is paying in weekly as he gets paid weekly but if it is calendar month he will be short of the 200 and will lose out on the bonus.

Help please!!

It's calendar months, so he can pay in any time in January, see post #471

colsten

Different banks may have different T&Cs. Halifax, for example, seems to have a particularly odd implementation in that they say all payments must be received by the 25th.