Help to Buy Isa scandal: Breaking News

brit1234

Help to Buy Isa scandal: 500,000 first-time buyers told scheme cannot be used for initial deposit on homes

The Government’s much vaunted Help to Buy Isa was on Friday described as a “scandal” after it emerged that first-time buyers will not be able to use it for an initial deposit on their new home.

http://www.telegraph.co.uk/news/2016/08/19/help-to-buy-isa-scandal-500000-first-time-buyers-told-scheme-can/

With saving rates so bad I really thought the Help to Buy ISA would help a little with all the interest on my housing deposit. However now I find I can't use the H2B ISA bonus for a house deposit despite all the banks and government advertising. I feel really mislead.

Marvel1

What is the scam excatly?

brit1234

You can't use the ISA for your house deposit, so it doesn't actually help you to buy.

theEnd

Sounds like you don't get the govt bonus until you've completed, which seems a bit silly.

Bonus should be source and triggered by the conveyancer. Would solve any issues quite easily.

missile

the clause was included to stop people benefiting from the bonus without actually buying a house.

Seems like a very sensible clause to me.

snowqueen555

then surely it is a misselling of a product when even the high street banks are saying it will help towards deposits.

Marvel1

I'm still confused, you get it on completion, so you get the deposit back - borrow from parents/family if you can and pay them back when you get it.

Thrugelmir

A free 25% and people are still complaining......:doh:

AFF8879

cjdavies wrote: »

I'm still confused, you get it on completion, so you get the deposit back - borrow from parents/family if you can and pay them back when you get it.

Surely it was designed for people who can't just rustle up £3,000 from friends or family as if they were just borrowing the lawnmower....

The fact as well that all the banks are marketing it along the lines of "boost your deposit" is about as blatant as an example of mis-selling as you can get. Though it sounds like they werent even informed of the clause...One particular quote from the Telegraph article is ridiculous:

A Halifax spokesman said it would not appropriate for it to go into details of the scheme rules with customers as it was defined by the Treasury.

What? It's not appropriate to give information to your customers who are ploughing up to £12,000 in an investment which cannot be used for its marketed purpose???

Guest101

Presumably you can use it for conveyancer fees etc?

So it does boost the deposit

ani*fan

I think it is a scam. The costs of buying a house are around £3k where I live. I can't imagine it costing £15k (the maximum you can get from the isa) in fees, so what is the rest of it supposed to be used for if not the deposit?

Interest rates have also dropped so they're not really a good place to keep your money, whatever you're saving for.

I'm raging about this. :mad: