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Will any lender accept my Help to Buy ISA?
JackM1990
Posts: 1 Newbie
Hi,
I am new to this forum and a first-time buyer. My partner and I have been saving into a Halifax HTB ISA since Jan 2016. We are nearly ready to buy in a couple of months, so are in the process of choosing a provider/lender for our mortgage. I read some information on Nationwide that concerned me a little:
"One of the ways you could buy your first home is with a Help to Buy: ISA and a Save to Buy mortgage from Nationwide. When you’ve held a Help to Buy: ISA savings account with us for at least three months, you'll be eligible to apply for a range of low-deposit mortgages called Save to Buy mortgages."
This got me thinking that some lenders would stipulate that we have to hold our ISA account with them and if so we have to know this 3 months in advance and do an ISA transfer now!! But I am a bit doubtful that this would be a rule of the HTB ISA. So, to give myself peace of mind, I went into a branch on Saturday and the branch manager firstly told me that yes, to use Nationwide as a lender and the HTB ISA bonus towards the deposit you would have to have held a nationwide HTB ISA for 3 months. He then backtracked and said he would actually check that and get back to me. I’ll be surprised if he does, so want to ask here.
I have checked the FAQ’s on the government’s site for the HTB and there is no mention of having to hold the HTB ISA account with a specific lender to be able to use the bonus with that lender. I think mine and the bank manager’s confusion on Nationwide website’s statement is the rule with the HTB ISA that you have to have the account open for at least 3 months (£1600) to get any bonus. He said that if that was the case, it might be a simple case of doing a ISA transfer to nationwide. But again, I can’t see the point in doing this.
Could someone please clarify that it doesn’t matter which bank the HTB ISA is with and that any lender will accept it? I am sure from reading the FAQ’s that the conveyancer will just need a closing statement from the bank and they will calculate the bonus into the total deposit amount and this is what gets paid to the lender regardless of where the money comes from??
Many thanks in advance.
I am new to this forum and a first-time buyer. My partner and I have been saving into a Halifax HTB ISA since Jan 2016. We are nearly ready to buy in a couple of months, so are in the process of choosing a provider/lender for our mortgage. I read some information on Nationwide that concerned me a little:
"One of the ways you could buy your first home is with a Help to Buy: ISA and a Save to Buy mortgage from Nationwide. When you’ve held a Help to Buy: ISA savings account with us for at least three months, you'll be eligible to apply for a range of low-deposit mortgages called Save to Buy mortgages."
This got me thinking that some lenders would stipulate that we have to hold our ISA account with them and if so we have to know this 3 months in advance and do an ISA transfer now!! But I am a bit doubtful that this would be a rule of the HTB ISA. So, to give myself peace of mind, I went into a branch on Saturday and the branch manager firstly told me that yes, to use Nationwide as a lender and the HTB ISA bonus towards the deposit you would have to have held a nationwide HTB ISA for 3 months. He then backtracked and said he would actually check that and get back to me. I’ll be surprised if he does, so want to ask here.
I have checked the FAQ’s on the government’s site for the HTB and there is no mention of having to hold the HTB ISA account with a specific lender to be able to use the bonus with that lender. I think mine and the bank manager’s confusion on Nationwide website’s statement is the rule with the HTB ISA that you have to have the account open for at least 3 months (£1600) to get any bonus. He said that if that was the case, it might be a simple case of doing a ISA transfer to nationwide. But again, I can’t see the point in doing this.
Could someone please clarify that it doesn’t matter which bank the HTB ISA is with and that any lender will accept it? I am sure from reading the FAQ’s that the conveyancer will just need a closing statement from the bank and they will calculate the bonus into the total deposit amount and this is what gets paid to the lender regardless of where the money comes from??
Many thanks in advance.
0
Comments
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HTB ISA and Nationwide's 'Save To Buy' are two totally separate things.
You can do your HTB ISA with whoever you want. The bonus will still be paid.
You may not get the same product with Nationwide though if you didn't fulfill the STB terms at the same time/as well as...I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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