Help to Buy ISA guide

Rich2808

Linzi84 wrote: »

The article obviously states that the help to buy isa can only be used on houses up to £250,000, what happens if when you start to look for houses you find one that is above the £250,000??

You can only claim the bonus on properties up to £250k - or £450k in London.

You can of course keep the isa open and earn the interest until you complete (i.e. stop being an FTB) but you cannot draw down the bonus.

The rules are a bit tough if you live in the south east - £250k would buy you a one bed flat there but a five bed house in the north east!

Linzi84

Yeah I agree, it is a tough rule. Same as the Cotswolds, to get a 3 bed house you could be looking at 300k.

Does it mean that I could take the money I had saved out but not gain the government bonus? So if I had saved 6k of my own money, I could get my 6k back. Meaning your better saving it there in case the house was less than 250k??

jimjames

Linzi84 wrote: »

Yeah I agree, it is a tough rule. Same as the Cotswolds, to get a 3 bed house you could be looking at 300k.

Does it mean that I could take the money I had saved out but not gain the government bonus? So if I had saved 6k of my own money, I could get my 6k back. Meaning your better saving it there in case the house was less than 250k??

You'd get your £6k back plus interest but not the bonus. As HTB is one of the best interest rates around it makes sense to use it if you're a first time buyer and then use non ISA accounts for the rest of your deposit.

colsten

glider3560 wrote: »

Your solicitor will arrange for the account to be closed (and also apply for the bonus) as you near completion. You can keep paying into the account right up until the point it is closed by the solicitor.

The solicitor will not arrange for the account to be closed. You need to close it. Think about it - it is your account, no solicitor has a right over our accounts (unless you give them POA but you wouldn't ever do that).

How do I apply for my bonus?

When you find your home, your mortgage lender will ask you to hire a solicitor or conveyancer. They will handle all of the legal aspects of buying your home. When you are close to finishing your purchase, you will need to let your Help to Buy: ISA provider know, and close your account. Don’t just withdraw all of your money – let your ISA provider know that you are closing your account and they will provide you with a closing letter. You will need to take this letter to your solicitor or conveyancer so that they can apply for your bonus.

They will add this to the other money you are putting towards your first home.

Don’t just withdraw all of your money as you will not receive the closing letter and you won’t be able to claim your bonus.

If you lose your closing letter, your bank or building society will be able to give a new one.

- See more at: https://www.helptobuy.gov.uk/help-to-buy-isa/faq/#sthash.IJuEPM1i.dpuf

Architect81

Hi Martin & Money Saving Expert Team

Please can you kindly clarify for me how the Help to Buy ISA cap (£250k outside London) relates to a residential self build mortgage?

In other words does this cap only relate to the purchase of property (I.e. a plot of land) or does it relate to the full mortgage amount (i.e. plot of land purchase and build cost)? If it is the former then it makes sense to pay into a Help to Buy ISA (as it is possible to buy a plot for less than £250k) but if it is the latter then it is not. So far I have asked two ISA providers and I have received two opposing views. As such I would be very grateful for your clarification.

Many thanks

colsten

All the publically available information about the scheme rules is here: https://www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work/

Kazzagirl

Can anybody tell me when applying for the help to buy ISA,if you are a student and not currently earning will this affect my application....so can I be refused and would this affect my credit score like when you apply for credits cards??

Thank you

Archi_Bald

An ISA is a savings account. Only applications for credit will be credit checked. If you are eligible, there is no reason why you should be declined an ISA.

charleston1

I have money in an isa (been in there for about 10 years now) but i've been silly in that I haven't been renewing it so I'm probably on 0.05% if that!

I'm wanting to open up a HTB isa at Halifax (where my old money is too)

Question is, can I renew the old ISA, given that it is "old money" if that makes sense, and still open up a HTB ISA?

Please someone advise me. I just don't want my other ISA making me nothing for a third year :-S

tothildiko

Hi,
me and my husband started to own a shared ownership property last year. Our contributionis only 40%. Am I right, that I can't have and he can't has a Help to buy Isa, because we are not a first time buyer anymore even if our property is not owned 100% by us?