Bank not allowing wife to get HTB ISA as I previously owned a property

jpneathey

Good evening all. The wife and I booked an appointment with our bank (major UK high street bank) to discuss opening a HTB ISA in her name with a view to us purchasing a house together (joint mortgage). I have owned a property previously so know I am not entitled to the top up. Having read Martin's MSE post it seemed that my wife would be able to get the government top up and put it towards a joint mortgage as the top up was per person, not per property.

When we spoke to our bank they were totally in the dark on this, and said that they would speak to head office and contact my wife once they had an answer. This was three weeks ago.

My wife called our bank today and spoke to the ISA Department at head office today, and the colleague she spoke to didn't know the rules and had never been asked the question, so spoke to her supervisor. This supervisor then said that my wife would not be entitled to any government top up, and that she should instead take out a standard high interest ISA.

Can anyone please let me know if we are wasting our time in attempting to use this scheme and, if not, point me towards a useful passage in the regulations that clearly states that we are able to use it in the manner we wish to. If I can get the latter then I can go back to the bank pre-armed with the facts.

As this is a government-sponsored scheme I am pretty sure our bank cannot impose their own rules regarding the top up?

I am a little fed up and confused so any assistance offered would be greatly appreciated.

MARTYM8`

I think they are wrong and I think Martin agrees too!


Help to Buy ISAs are for individuals, it's not about who's buying the house, it's simply about whether you're a first-time buyer. To make it plain:

If you're a first-time buyer, buying with someone who's owned before, you CAN open one, they CAN'T.
If you're a first-time buyer, buying with another first-time buyer, you CAN BOTH open one. So, together, you can save £400 a month and double the bonus.

http://www.moneysavingexpert.com/savings/help-to-buy-ISA

colsten

https://www.helptobuy.gov.uk/

Flobberchops

I think your bank needs to give their staff better training.

BobQ

It might help if you ask the bank on what ground(s) they are refusing. If they cannot tell you I suspect they are just making up the rules. IT would be easier to challenge if they explain why you do not qualify.

Rich2808

Your wife is entitled to buy the product - why can't she just apply online?

If this branch/bank won't help find another or another bank or BS.

jimjames

Just apply for the Halifax one, pretty pointless to use any other when no rates match them.

Thrugelmir

Rich2808 wrote: »

Your wife is entitled to buy the product - why can't she just apply online?

If this branch/bank won't help find another or another bank or BS.

Or is it their internal lending policy not to accept applications where only one party is a FTB?

Rich2808

Thrugelmir wrote: »

Or is it their internal lending policy not to accept applications where only one party is a FTB?

Why would they refuse business and a potential future mortgage customer as they probably assume many FTBs will pick the same bank/BS for their isa as their mortgage.

Its not against the government's rules and no where I have seen does any bank disallow this - its probably just that the staff haven't take the time to understand the rules.

Just apply online! You are under no obligation to have the mortgage with the HTB ISA provider. Let them prove you are ineligible!

jpneathey

Thanks for all of your help, we are going to go for the online Halifax option instead.