Help to Buy Isa scandal: Breaking News

mije1983

ultimatedingbat wrote: »

If anyone can give some proper advice this would be really helpful! Myselfand my husband have approx 4k in our HTB ISA's. That rounded us up to approx 5.5k including the bonus, but now we've been told that won't be included in the deposit, so we don't have 5.5k for the deposit, but it will be paid on completion, meaning it won't be able to be used for the deposit.
Also if we used the 4k for our deposit, then NO bonus will be paid as theres no money in the account therefore no bonus

It can be used for the deposit, just not the initial deposit at exchange. What % are you handing over at exchange? Have you tried negotiating a lower % with the seller to offset the fact that you won't have the bonus until completion?

Take a look at posts 43 & 46 which may explain it a bit better.

http://forums.moneysavingexpert.com/showpost.php?p=71179173&postcount=43

http://forums.moneysavingexpert.com/showpost.php?p=71179353&postcount=46

ultimatedingbat

mije1983 wrote: »

It can be used for the deposit, just not the initial deposit at exchange. What % are you handing over at exchange? Have you tried negotiating a lower % with the seller to offset the fact that you won't have the bonus until completion?

Take a look at posts 43 & 46 which may explain it a bit better.

http://forums.moneysavingexpert.com/showpost.php?p=71179173&postcount=43

http://forums.moneysavingexpert.com/showpost.php?p=71179353&postcount=46

We've only got a 5% deposit INCLUDING the bonus

mije1983

ultimatedingbat wrote: »

We've only got a 5% deposit INCLUDING the bonus

Then firstly try and negotiate a 4% initial deposit with the remaining 1% at completion.

If that fails, then as I see it you have 3 options. Others may have more suggestions.

1. Borrow the £1500 from family/friends.
2. Use any contigency fund/savings to make up the £1500 shortfall.
3. Wait another few months to make a purchase until you have saved a few hundred more.

Crashy_Time

mije1983 wrote: »

Then firstly try and negotiate a 4% initial deposit with the remaining 1% at completion.

If that fails, then as I see it you have 3 options. Others may have more suggestions.

1. Borrow the £1500 from family/friends.
2. Use any contigency fund/savings to make up the £1500 shortfall.
3. Wait another few months to make a purchase until you have saved a few hundred more.

4. Wait while prices drop, and then buy.

mije1983

Crashy_Time wrote: »

4. Wait while prices drop, and then buy.

Then you could be waiting a week, a year, or 5 years.

ultimatedingbat

mije1983 wrote: »

Then firstly try and negotiate a 4% initial deposit with the remaining 1% at completion.

If that fails, then as I see it you have 3 options. Others may have more suggestions.

1. Borrow the £1500 from family/friends.
2. Use any contigency fund/savings to make up the £1500 shortfall.
3. Wait another few months to make a purchase until you have saved a few hundred more.

If I was in the position to borrow money I would have done it already. It is not my parents, my friends or my families job to bail me out.
We've got no savings outside of the house deposit and fees.
It's not a few hundred more we're talking, it's another £1500 which is not a few months saving.

They've said they won't do it.

gingercordial

ultimatedingbat wrote: »

If I was in the position to borrow money I would have done it already. It is not my parents, my friends or my families job to bail me out.
We've got no savings outside of the house deposit and fees.
It's not a few hundred more we're talking, it's another £1500 which is not a few months saving.

They've said they won't do it.

In the most gentle way possible, is it wise for you to be buying a house right now if you don't even have £1,500 spare in savings? What if the boiler explodes two days after completion or a tree falls through the roof? No savings and you say you have no ability to save that up in a month or two either; you'd be stuck. Houses can be so expensive and at the most unexpected and inconvenient times, so a buffer really is necessary when buying.

Anyway, the seller doesn't have to agree to a smaller exchange deposit from you. If there's a chain they'll be needing to pay their seller 5%/10%/whatever and maybe their seller (or even the next person up the chain) is the one who won't agree to reduce the amount that changes hands and they don't have the spare cash either. However if there's no way you can pay more than £4k at exchange and you truly can't go ahead otherwise, tell your seller the sale is in jeopardy unless he agrees and ask him if he is really willing to see it fall apart.

If he doesn't agree and you can't find the money, you can't exchange.

mije1983

ultimatedingbat wrote: »

If I was in the position to borrow money I would have done it already. It is not my parents, my friends or my families job to bail me out.
We've got no savings outside of the house deposit and fees.
It's not a few hundred more we're talking, it's another £1500 which is not a few months saving.

They've said they won't do it.

Then you have to either find a cheaper property or wait to save.

Making some rough assumed calculations I'm assuming you are saving about £100 a month each? (Based on you putting in £1000 each to start with, and having the ISA for 10 months). So in 7/8 (a few) months you will have made up that £1500.

It's not about 'bailing you out'. It's about helping a friend/family member through a sticky patch. But if you've asked and they can't do it then fair enough.

ultimatedingbat

We have a good income between us, we can save and have saved what we have in less than a year. We comfortably save the £400 a month between us, other than this month whereby I've changed jobs. We have £4500 in deposit, plus £2000 ready for fees. At the moment everything we've got savings wise is in there for buying the house.

Saving the extra £1500ish would be more difficult at the moment as I've just changed jobs and money is a little tighter. At best we could probably do it in 3 months, but by then we'll have lost hte house anyway. Realistically with the next few months probably 3-6 months to save the extra.


We are aware of the situation we're in, it's irritating to have been lied to from the outset of this account, especially as the bank were under the same illusions.

gingercordial wrote: »

In the most gentle way possible, is it wise for you to be buying a house right now if you don't even have £1,500 spare in savings? What if the boiler explodes two days after completion or a tree falls through the roof? No savings and you say you have no ability to save that up in a month or two either; you'd be stuck. Houses can be so expensive and at the most unexpected and inconvenient times, so a buffer really is necessary when buying.

Anyway, the seller doesn't have to agree to a smaller exchange deposit from you. If there's a chain they'll be needing to pay their seller 5%/10%/whatever and maybe their seller (or even the next person up the chain) is the one who won't agree to reduce the amount that changes hands and they don't have the spare cash either. However if there's no way you can pay more than £4k at exchange and you truly can't go ahead otherwise, tell your seller the sale is in jeopardy unless he agrees and ask him if he is really willing to see it fall apart.

If he doesn't agree and you can't find the money, you can't exchange.

ultimatedingbat

mije1983 wrote: »

Then you have to either find a cheaper property or wait to save.

Making some rough assumed calculations I'm assuming you are saving about £100 a month each? (Based on you putting in £1000 each to start with, and having the ISA for 10 months). So in 7/8 (a few) months you will have made up that £1500.

It's not about 'bailing you out'. It's about helping a friend/family member through a sticky patch. But if you've asked and they can't do it then fair enough.

It's more than just a sticky patch, and if my parents had that mon ey in the first place we'd already have it, it's supposed to be our house.

We're current saving between £300-£400 a month between us. It's been a little lower recently due to job changes but mostly. It's more frustrating that we once again need to put things on hold due to the false promises that were made.