Help to buy ISA confusion

RGBoy

Hello!

First time buyer here, just hoping someone may be able to clear up a few confusions I have with my current H2B ISA.

I have an AIP for a property with a sale value of 130k, based on a 13k deposit / 90% LTV.

I have 13k in a savings account, and currently 2k in a h2b isa (pending how long things take to go through this may increase @ £200/month)

My first confusion; my mortgage adviser has stated I would need the 13k for my 10% deposit, and then use the 2k in the isa towards fees (with the government bonus being applied on completion). Whereas I was under the impression my exchange deposit would be 11k from savings, and 2k from the isa. Leaving us 2k in savings accounts for fees etc.

My second confusion; On the above figures (130k house less 13k deposit) my total loan would be £117k. However, as I will be getting the isa bonus on completion (say £500 for simplicity) should i not be applying for a mortgage for £116.5k? Or does the "bonus" automatically come off the amount owed on the mortgage?

Many thanks.

rhysadams

I've found out recently the Help 2 Buy ISA isn't as good as it was sold by the government. In the end I've not received a bonus but taken a better mortgage deal and added cashback.

In other words, the way I was explained it is as follows:

You will need a £13k deposit, the 2k from the ISA gets brought forwards at the time of completion so then covers the fee's for the solicitors, etc.