Help to Buy ISA guide

eskbanker

BLevi wrote: »

Hi, the article says that the saving can be used for any property costing under £250,000.
Can someone confirm please, if this price limit is the same or higher, if a couple wants to buy a property, both paying into their HTB ISA, and it would be the first home for both of them?

The limit is the same if it's a couple, it's based on the property value rather than one person's share of it.

peterborian659

Hi there, just wondering if you can help with two things

1) I already have an ISA and looking to get a help to buy ISA because of the interest rate and the rewards. I already have an ISA that I have not contributed to this financial year. Can I withdraw from this ISA and put into the help to buy ISA or is this not allowed?

I have read the website guide but questions around an ISA transfer or withdrawal and then re-invest is not clearly answered.

2) If I were to take part in property crowdfunding where a dividend is owned in shares of a property, would this rule me out of a help to buy ISA?

Many thanks

Sam

jimjames

Previous year's ISAs have no impact on this so yes you can withdraw cash and pay it in. You may want to check the rates you're getting on your old cash ISA as you can almost certainly get vastly more outside the ISA wrapper (HTB is still worthwhile with Halifax though)

I wouldn't imagine a crowdfunded site would be counted but you'd need to confirm as it may be an interest in property that impacted.

Bigdanm89

amr547 wrote: »

I'm a bit confused about the ISA - what is the bonus "for"? How is it paid? I was under the assumption it made up part of your deposit at completion but looking at the guide for conveyancers it says the bonus cannot be part of a deposit?! Have I misunderstood somewhere along the line??:eek:

I'm also a little confused. I thought the whole point of the ISA was to assist in saving up a deposit, but as you mention in the conveyancer studies it states it's not for any deposit funds and is to contribute to the overall cost of the purchase of a house.

Easier said than done when you have a mortgage offer on the table for a set amount, any bonus would potentially mean having to get a new offer so it all added up to the full purchase price.

jules201

I've just checked my (Natwest) HTB ISA online (opened last month), and I've earned a lovely 33p interest. Excellent! But it's been added to my HTB ISA account. When I opened my cash ISA (also with Natwest - I now have a split account) I had to nominate a different account for the interest to be added to so that I didn't go over the limit.

Does this 33p mean I can only add £199.67p to my HTB ISA this month? I hope not, as I've already sent off the transfer form for the full amount!

Archi_Bald

jules201 wrote: »

Does this 33p mean I can only add £199.67p to my HTB ISA this month? I hope not, as I've already sent off the transfer form for the full amount!

It was Natwest who deposited the 33p, not yourself. You can deposit £200 a month.

eastlad

I have been saving up some time now for my first house, I've been waiting for a help to buy ISA for ages.

I already have the full £12,000 needed for the full government grant, is there any way I can open a help to buy with the maximum from the start? I don't want to be waiting another 5 years to get the full amount.

Please help!

eskbanker

eastlad wrote: »

I have been saving up some time now for my first house, I've been waiting for a help to buy ISA for ages.

I already have the full £12,000 needed for the full government grant, is there any way I can open a help to buy with the maximum from the start? I don't want to be waiting another 5 years to get the full amount.

If you've been waiting for this for ages with money available, why didn't you open one when they started in December? That means you've already missed out on a couple of months of the bonus (or have to wait another couple of months to get the full whack).

Anyway, what's done is done, but the short answer to your question is 'no' - the limit is strictly £200 per month plus an additional £1,000 in the first month only, as has been prominently covered in every piece about these accounts for many months! If you're buying with a partner you can both open one to effectively double up but that's your lot I'm afraid....

eastlad

eskbanker wrote: »

If you've been waiting for this for ages with money available, why didn't you open one when they started in December? That means you've already missed out on a couple of months of the bonus (or have to wait another couple of months to get the full whack).

Anyway, what's done is done, but the short answer to your question is 'no' - the limit is strictly £200 per month plus an additional £1,000 in the first month only, as has been prominently covered in every piece about these accounts for many months! If you're buying with a partner you can both open one to effectively double up but that's your lot I'm afraid....

Hi, firstly thank you for your response.

I knew these came into effect in December however my savings are already in a cash ISA. I was advised I would have to close this ISA in order to open a Help to Buy. If I did this I would lose any interest gain between April-Dec on that ISA. Therefore I am waiting to open a Help to Buy in April.

Have I been misinformed here?

eskbanker

eastlad wrote: »

Hi, firstly thank you for your response.

I knew these came into effect in December however my savings are already in a cash ISA. I was advised I would have to close this ISA in order to open a Help to Buy. If I did this I would lose any interest gain between April-Dec on that ISA. Therefore I am waiting to open a Help to Buy in April.

Have I been misinformed here?

I can't say for sure but it would be unusual to lose interest in that way - if it's a variable rate easy access product then you should be able to close it without penalty and you'd get the interest for April right up to the date you closed it. If it's a fixed rate fixed term product then there may be a penalty for early withdrawal though.

Or if your ISA is with one of the providers who offer split ISAs (e.g. Nationwide) you can have an HTB ISA alongside your existing one.