HTB ISA or Increase Deposit

pollyannaL

Hi

I am having second thoughts about my HTB ISA.
Due to low wages but a large deposit, i feel i need as much up front deposit i can can my hands on to get a decent house (don't want HTB scheme/ new build).

Would it be stupid to take the money out of HTB ISA and use this money for my deposit rather than after exchange towards mortgage.

I am assuming lenders don't score you on having a HTB ISA??

Pixie5740

You don't need to buy a new build with HTB EL or indeed a new build at all just because you have a HTB ISA.

Matt_L

Pixie5740 wrote: »

You don't need to buy a new build with HTB EL or indeed a new build at all just because you have a HTB ISA.

I was under the impression the HTB Equity Loan was for new builds only?? Also what i think the op means is that the HTB ISA isn't really available to use as a deposit, although i could be wrong about both...

Some clarity is needed...

nodtomc

I think you've misunderstood what a Help To Buy ISA is.

It's a savings account that pays a bonus on completion. You can't use the bonus towards your deposit funds but you can use your own money in that savings account towards the deposit. At 25% effective interest, you'd be mad not to put your money in there

pollyannaL

Hi,

I know HTB ISA is for all properties (i only said i don't want a HTB EL as most people suggest this to me when i say I am a low earner).

But yes, the point of my post is that my HTB ISA money cannot be used for the deposit (as @MattL suggests). I wondered whether taking out my HTB ISA money and using it for my deposit would be a good idea - i guess it's weighing up a short term V Long term gain. ......but on reading @ nodtomc's post, i can apparently use my own HTB ISA money for the deposit but just not the Gov Bonus??? is that right??

Does this seem reasonable?
deposit: £51000
fees: £4000
HTB ISA: £4000
Property: £180000
Lending: £130000

Sole applicant/ wage: £27400
Outgoings: Student Loan £115 p/m & Pension £120-140 p/m
No other commitments
3 credit scores/ excellent/ 999/

nodtomc

If you have 4000 in a HTB ISA, you have a £55000 deposit.

Before you have to hand your deposit over, you ask your bank to close the HTB ISA, don't remove the money, you'll lose the bonus. Ask the bank to close the account, they'll give you a closing statement and move the money to an account of your choice, then you give the closing statement to your solicitor who will claim the bonus upon successful completion of your house.

Pixie5740

Matt_L wrote: »

I was under the impression the HTB Equity Loan was for new builds only?? Also what i think the op means is that the HTB ISA isn't really available to use as a deposit, although i could be wrong about both...

Some clarity is needed...

Yes I aware that HTB EL can only be used to purchase new builds but the way the OP was written it seemed as though the OP thought you could only use HTB ISA if you were going to then use HTB EL. Further clarification from the OP shows there was no need to mention HTB EL at all.

Matt_L

nodtomc wrote: »

If you have 4000 in a HTB ISA, you have a £55000 deposit.

Before you have to hand your deposit over, you ask your bank to close the HTB ISA, don't remove the money, you'll lose the bonus. Ask the bank to close the account, they'll give you a closing statement and move the money to an account of your choice, then you give the closing statement to your solicitor who will claim the bonus upon successful completion of your house.

Is that correct, my maths make it that he would have £5000 deposit????

nodtomc

Matt_L wrote: »

Is that correct, my maths make it that he would have £5000 deposit????

They said £4000 in HTB ISA, £51000 deposit. Therefore £55000 deposit, they're not seperate