Help to Buy ISA - CAN I HAVE ONE?

wallofbeans

masonic wrote: »

In that case, you can open a HTB ISA. But you are correct that if you transferred the existing property into joint names you would no longer qualify.

Great. I wonder what happens if we transfer the existing property into joint names after opening the HTB ISA?

And could the mortgage for a new property be in both our names, even though they have owned before? Or would it have to be in my name to get the bonus?

wallofbeans

And it's worth doing, isn't it? It seems like it's probably worth doing even without the 25% at the end of it. A savings account earning 4% is pretty good, better than my having the money sitting in my 3% Tesco bank account anyway. Or am I missing something?

Archi_Bald

The maximum you can put into a HTB ISA is £200/mth, apart from the first month, when you are allowed a total of £1,200. £3,400 in year 1, £2,400 in follow-on years.

For this amount of money, you can get 5% and 6% in current accounts and attached regular savings accounts.

The big advantage of the HTB ISA is the bonus / the ability to transfer it into a LISA.

Archi_Bald

silvercar wrote: »

Would have to be soley in your name to get the bonus.

I don't believe this is correct.

Do I have to be on the mortgage of the property I am buying?
No. However, your name will have to be on the Title Deed of the property.

- See more at: https://www.helptobuy.gov.uk/help-to-buy-isa/faq/#sthash.m2R0M0xQ.dpuf

The property must still be mortgaged though

Can I buy a property without a mortgage?
No. The property you are buying must be mortgaged in order to be eligible for the government bonus.

- See more at: https://www.helptobuy.gov.uk/help-to-buy-isa/faq/#sthash.m2R0M0xQ.dpuf

wallofbeans

Archi_Bald wrote: »

The maximum you can put into a HTB ISA is £200/mth, apart from the first month, when you are allowed a total of £1,200. £3,400 in year 1, £2,400 in follow-on years.

For this amount of money, you can get 5% and 6% in current accounts and attached regular savings accounts.

The big advantage of the HTB ISA is the bonus / the ability to transfer it into a LISA.

I already have the best of the current accounts. But no regular savers. I thought that savers meant my money was locked away, or if I took it out I lose the great rate of interest. I'm not planning on doing that but am nervous of having unaccessible cash.

This seemed like you didn't lose the 4% if you had to close the account for some reason so that was an added bonus of getting it over a regular saver. Unless I've got that wrong. Which I might!

Also - what's a LISA? EDIT: I found out and I'm not eligible - too old!

wallofbeans

Archi_Bald wrote: »

I don't believe this is correct.



The property must still be mortgaged though

Interesting!

masonic

wallofbeans wrote: »

I already have the best of the current accounts. But no regular savers. I thought that savers meant my money was locked away, or if I took it out I lose the great rate of interest. I'm not planning on doing that but am nervous of having unaccessible cash.

This seemed like you didn't lose the 4% if you had to close the account for some reason so that was an added bonus of getting it over a regular saver. Unless I've got that wrong. Which I might!

Well, you only need to lock it up for 12 months and some accounts are more flexible than others when it comes to early withdrawals. I have 6 regular savers spaced roughly 2 months apart, so I only have to wait a maximum of a couple of months for one to mature if I happen to need some cash, but I also have plenty available in 4-5% current accounts as a buffer.

Also - what's a LISA?

Google Lifetime ISA. I'm surprised you missed the news.

wallofbeans

Archi_Bald wrote: »

I don't believe this is correct.



The property must still be mortgaged though

masonic wrote: »

Well, you only need to lock it up for 12 months and some accounts are more flexible than others when it comes to early withdrawals. I have 6 regular savers spaced roughly 2 months apart, so I only have to wait a maximum of a couple of months for one to mature if I happen to need some cash, but I also have plenty available in 4-5% current accounts as a buffer.


Google Lifetime ISA. I'm surprised you missed the news.

I think it's probably that I'm a year too old to get one!

Archi_Bald

wallofbeans wrote: »

I already have the best of the current accounts. But no regular savers. I thought that savers meant my money was locked away, or if I took it out I lose the great rate of interest. I'm not planning on doing that but am nervous of having unaccessible cash.

This seemed like you didn't lose the 4% if you had to close the account for some reason so that was an added bonus of getting it over a regular saver. Unless I've got that wrong. Which I might!

The 6% Regular Savings accounts are all a 12 month commitment. The 5% ones are all instant access, w/o any loss of interest. You can deposit £950 a month into these in total.

wallofbeans

Archi_Bald wrote: »

The 6% Regular Savings accounts are all a 12 month commitment. The 5% ones are all instant access, w/o any loss of interest. You can deposit £950 a month into these in total.

OK, 5% sound interesting. Although they all seem to be only at that rate for the first year, which is frustrating. Do people just move the money to another savings account after a year?

And HTB ISA might still be a good idea anyway, as a I'll be moving in the next few years for sure.