Help to Buy ISA in practice

Lily_

Hello everyone,
My husband has a Help to Buy ISA and I don't quite get how it works...

If the government bonus can't be paid at exchange, but at completion where does the money go to? Will it be transferred to his current account or to our lender?

Many thanks,
Lily

marksoton

See:

https://www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work/

ST1991

We exchanged and completed just under a week ago (after 10 months...) and our bonus went towards funds for exchange.
Our deposit was 5%. I'm not sure if they got the full 5% at exchange (our deposit + bonus) or just under (our deposit less bonus) - but it all went through OK?

I would recommend speaking with your solicitor, they can help and offer you guidance on how the bonus works for you, as i know some of the rules have changed!

GLM71093

Me and my partner have recently brought our first house and we both had the HTB ISA.
The money went strait to the solicitors and the solicitors then lowered our bill by that amount.

Fingers crossed for you!!!

whizzybee

I think everyone's situation differs. As I was not going to have anywhere near 10% for exchange, it was agreed that I would exchange with a 5% deposit, then my solicitor withdrew the bonus using my closing letter and it was handed over with the rest of the money at completion. So I had two bills to pay; the 5% deposit at exchange and then the rest of the deposit and solicitors fees at completion

magicpork

not all deposit is paid at exchange, HTB ISA is used to contribute to the portion of deposit that's due at completion.

Lyger

I'd already paid my fees/deposit before my HTB ISA was processed, so my solicitor sent me a cheque for what was owed after exchange.

I don't think it typically goes like that though. Due to an error in communication, my solicitor didn't actually realise until later on that some of my funds were from a HTB ISA.

Lily_

Thanks everyone!