Help to Buy ISA & Further saving for fees (Advice please!)

b16jsy

Hi all,
Just looking for some advice, I currently have a Help to Buy ISA and have almost achieved my target of £4,000 (meaning I will have £5,000.00 as a mortgage deposit once the 25% bonus is applied). This will give me enough for my maximum budget of a £100,000 house (using 5% deposit).
My main query is that I also need to save further money to allow for solicitors fees etc.
Should i keep adding to my Help to Buy ISA account, and withdraw the fees amount only before I close down the account for it's bonus? Or should I open a different stand alone savings account to save these further fees?
Any advice would be much appreciated!

Thanks
Joe

WillBishop

Hi Joe,

As you probably know, you don't receive a bonus on any money you withdraw before the house purchase. You'd only receive interest on that money.

Therefore you should save for fees in whichever account offers you the highest interest rate. TSB are paying 3% on their Plus current account at the moment

jlaw4

Hi,

As far as i am aware you can save extra in the HTB and request to close it then use the funds when there transferred to your nominated account, so you can use extra that isn't required for deposit for extra fees but it means you'd get the bonus on your closing balance I could be wrong, but its just the bonus that must go towards to the deposit, what you save can be used on whatever you need.

kingstreet

If you are applying for a 95% mortgage, you must have 5% to hand to your solicitor ahead of exchange of contracts, excluding the bonus which won't be available until completion.

Here is the last epic on this subject;-

https://forums.moneysavingexpert.com/discussion/5582683

b16jsy

Thanks for the replies they have been very helpful.
There looks to be a lot of confusion about the ISA bonus being allowed or not being allowed to form part of the mortgage deposit!
But I now have a much better understanding of how it works
Joe