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Help to Buy ISA guide

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  • masonic
    masonic Posts: 27,163 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    eskbanker wrote: »
    Halifax are apparently withdrawing their 4% rate for new applicants from tomorrow so anyone looking to secure this rate would need to act quickly!

    https://forums.moneysavingexpert.com/discussion/5454965
    Thanks, not sure how I missed that. It was already preferable to go with Santander for the less restrictive conditions. This is even more reason to do so as I don't expect the 4% rate for existing customers will last much longer if it is being slashed for new customers.
  • Hi,

    I've previously had a shared ownership apartment which I've now sold. I'm currently living with my mother to save for a house of my own.
    Would I be entitled to apply for a first time buyers ISA?

    Many Thanks
  • masonic
    masonic Posts: 27,163 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Victoria_K wrote: »
    Hi,

    I've previously had a shared ownership apartment which I've now sold. I'm currently living with my mother to save for a house of my own.
    Would I be entitled to apply for a first time buyers ISA?

    Many Thanks
    I'm afraid not. To qualify you must never have owned, or part owned, a property.
  • Thank you for getting back to me so quickly!
    Victoria :)
  • Rich2808
    Rich2808 Posts: 1,385 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper Combo Breaker
    Hi guys. I spoke to virgin money with regards to a help to buy isa and they said it would be credit checked before they open the account. I guess I should just give it a go and see what happens. Just can't afford anymore bad stuff on my credit file. My bank RBS were also very cautious I'm opening a new account for me due to the current state of my credit file. Thanks

    They will just do a soft search to prove who you say you are and live at that address. It's for money laundering - it's not a full credit check,

    Your Credit worthiness should not affect your ability to open a savings account or a HTB isa. So start saving - you have until 2030 to claim the bonus so loads of time to improve your credit rating for a mortgage.
  • amanwithaplan
    amanwithaplan Posts: 2,374 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I've read lots on this thread and I can't really figure out what is possible in my situation.

    I (foolishly) didn't open a new ISA last year 14/15 to transfer my santander ISA to (£30k+). I need to get this earning more interest than it is (think it is 0.75%) but I think if i open a new cash ISA now to transfer this money to, this will preclude me from opening a HTB ISA, which I would like to start saving into.

    I 'think' a split ISA with nationwide is going to be my best bet 2%/1.4% right?

    The only other way I can think of is to take money out of the cash ISA, to drip feed multiple regular savers (that don't exist yet) - but then i'm losing the tax free status of this money long-term.

    I'm not sure what to do, quite confusing. I've already got two santander 123 accounts maxed also.

    Thanks in advance
  • colsten
    colsten Posts: 17,597 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    ISA transfers do not count as new subscriptions. Therefore you could transfer your existing ISA to any other ISA provider that processes a transfer without requiring any new deposit.

    You could certainly also transfer to a split ISA provider like Nationwide.

    You would almost certainly get better interest on your £30K in current accounts / regular savings accounts. If you are keen to maintain the ISA wrapper for the £30K, read up about flexible ISAs.
  • amanwithaplan
    amanwithaplan Posts: 2,374 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    colsten wrote: »
    ISA transfers do not count as new subscriptions. Therefore you could transfer your existing ISA to any other ISA provider that processes a transfer without requiring any new deposit.

    You could certainly also transfer to a split ISA provider like Nationwide.

    You would almost certainly get better interest on your £30K in current accounts / regular savings accounts. If you are keen to maintain the ISA wrapper for the £30K, read up about flexible ISAs.

    So you think i can transfer my ISA to a new ISA (for better interest) then also open a HTB ISA, to regularly save into? Both in the same tax year - I am essentially opening two ISA's, albeit one is taking previous year subscriptions and I won't be paying anything into it.
  • masonic
    masonic Posts: 27,163 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    So you think i can transfer my ISA to a new ISA (for better interest) then also open a HTB ISA, to regularly save into? Both in the same tax year - I am essentially opening two ISA's, albeit one is taking previous year subscriptions and I won't be paying anything into it.
    There is no limit to the number of new ISAs you can open. There is a limit to the number of ISAs you can save new money into.
  • FAO MoneySavingExpert: potentially incorrect article

    In point 5 of the article, it states "You can use it with any mortgage type, it DOESN'T have to be a help to buy mortgage (though it can be)" and indeed everywhere else the HTB ISA is discussed that I've seen carries this same assertion.

    Unfortunately, the two (HTB ISA/HTB equity loan) appear to be incompatible.

    When you do the HTB Equity Loan (which must be for new builds and hence there's a high likelihood of buying offplan), you have to hand over the 5% deposit at exchange. Housebuilders typically want this within a month of reservation and as much as six months ahead of the construction finished/completion date.

    However, point 9 of the article states "However, you can only use the bonus for your mortgage deposit, not your home deposit. What this means in practice is that the Government bonus can't be used toward the deposit you pay to the seller when you exchange contracts, it can only be used at completion".

    So, this has two direct implications: 1) that it is not possible to use the HTB ISA government bonus towards the 5% deposit requirement of the HTB equity loan scheme; and 2) that, since there is no deposit left to pay on the HTB equity loan scheme at completion, there is nothing to put the HTB ISA government bonus towards, so presumably it will be lost???

    My questions therefore are:

    i) are the facts of the article wrong or is this a true incompatibility between the two schemes?
    ii) have I misunderstood something which resolves the potential clash??
    iii) has anyone thought of/looked into this before and is there a resolution???

    Thanks Martin :)
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