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Help to Buy Isa scandal: Breaking News
Comments
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kingstreet wrote: »Well done.
Nail, hit, head.
The investment is available, the bonus comes later.
Getting extra "free" money at a later point in time doesn't make it a scam it just makes it inconvenient.
The "s" word really is bandied about far too much on here!
Most people trying to buy a house can afford mortgage repayments, so having an extra bit of money to put towards them, while being welcome, is not vital.
The whole appeal of these products is that they were marketed as helping to boost the deposit, which is by far the biggest hurdle most people have to overcome to get on the property ladder.
Now we learn they don't do what they were purported to do. The government and banks used dishonest marketing to trick people into buying a product that doesn't do what they said it does. That's pretty much the definition of a scam.0 -
Most people trying to buy a house can afford mortgage repayments, so having an extra bit of money to put towards them, while being welcome, is not vital.
The whole appeal of these products is that they were marketed as helping to boost the deposit, which is by far the biggest hurdle most people have to overcome to get on the property ladder.
Now we learn they don't do what they were purported to do. The government and banks used dishonest marketing to trick people into buying a product that doesn't do what they said it does. That's pretty much the definition of a scam.
Thy get it on completion of the house sale.0 -
This is a non-story, even Martin Lewis has tweeted so. The bonus DOES boost your mortgage deposit and is paid out (to the vendor via your solicitor) on completion. What it doesn't do is make up for a shortfall on the exchange deposit.0
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"The bonus must be included with the funds consolidated at the completion of the property transaction."
That, to me, appears to say that it'll be gathered up with the mortgage and the rest of your deposit immediately prior to being paid to the vendor of the property. So it does form part of the deposit for mortgage purposes, just not the exchange deposit. The latter can be any amount agreed between the vendor and the buyer (via solicitors) can't it?0 -
So it basically does what it says on the tin;
It does now that the wording on "the tin" has been altered, yes.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
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....
To obtain the full bonus you would need to deposit the full £1,200 initially then save for a further 54 months. Which means that a single person isn't going to claim this until mid 2020 at the earliest.
The scheme was designed to help those that cannot save a lot ( i.e. currently renting or in low paid work) make the transition to home ownership. Not provide instant bonuses to those with good deposits.0 -
I've been reading up on the t&c's but can't find an answer through the legal jargon so could someone kindly clear this up...
Would the bonus be paid into my bank account after the sale has gone through or paid into the mortgage? We were hoping to have some money left over from the purchase to do some minor improvements but having to stump up the extra will take a chunk out of this money saved.
Thanks0 -
OK, I'm currently at the 'waiting for exchange' stage and using a H2B ISA towards my deposit.
As I understand it from mortgage adviser and solicitor...
My deposit is paid in two stages, firstly 10% of the purchase price (although this varies) will be paid at exchange, this won't include the money in the H2B ISA as this can't be used for the portion of the deposit paid at exchange.
The rest of my deposit will be due at completion, at this stage the money in my H2B ISA will be paid, along with the bonus that my solicitor will have applied for from the government.0
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