We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Claiming Help to buy ISA bonus
EH75
Posts: 22
Forumite
Morning. First time buyer here looking to buy in the next few months.
Has anyone used their help to buy ISA to buy a property yet? I opened one the first day they were available and currently have £2k in it (another £200 going in next week).
I was just looking for a bit of clarification on exactly how claiming the bonus works and how I can use it? On the main moneysavingexpert site it says the bonus can't go towards your deposit at exchange of contracts but can be used at completion. So for arguments sake as I understand it if I put in an offer of £140k on a property and had £12k savings for deposit + £2k in HTB ISA, I could close down the ISA, remove the £2k and at the same time I would be given a letter by the bank to give to my solicitor. I would then use the £12k + £2k to make up my 10% deposit at exchange and then eventually at completion the solicitor would get the £500 from the government which they could then put towards it and reduce the value of the mortgage by £500 so I would be borrowing £125500 instead of £126000?
Is that roughly how it works? Also any idea on how long it takes to get confirmation of the bonus from the government to the solicitor? Is that going to be fairly straightforward?
Has anyone used their help to buy ISA to buy a property yet? I opened one the first day they were available and currently have £2k in it (another £200 going in next week).
I was just looking for a bit of clarification on exactly how claiming the bonus works and how I can use it? On the main moneysavingexpert site it says the bonus can't go towards your deposit at exchange of contracts but can be used at completion. So for arguments sake as I understand it if I put in an offer of £140k on a property and had £12k savings for deposit + £2k in HTB ISA, I could close down the ISA, remove the £2k and at the same time I would be given a letter by the bank to give to my solicitor. I would then use the £12k + £2k to make up my 10% deposit at exchange and then eventually at completion the solicitor would get the £500 from the government which they could then put towards it and reduce the value of the mortgage by £500 so I would be borrowing £125500 instead of £126000?
Is that roughly how it works? Also any idea on how long it takes to get confirmation of the bonus from the government to the solicitor? Is that going to be fairly straightforward?
0
Comments
-
You can just have the exchange price altered to reflect the bonus - So you exchange with 13.5k ie non-standard exchange percentage (assuming your vendors will be happy), but your overall LTV with bank is unaltered as the loan is still the same percentage. It then frees up £500 of your money to spend on whatever you want.0
-
Ah got it thats good to know cheers.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 355.7K Banking & Borrowing
- 254.9K Reduce Debt & Boost Income
- 456.1K Spending & Discounts
- 248.3K Work, Benefits & Business
- 605.8K Mortgages, Homes & Bills
- 179K Life & Family
- 263.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.7K Read-Only Boards