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Help to buy isa first time buyer
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RyanWills94
Posts: 67 Forumite
Not sure how to word my question so I’m going to try and be as concise as I can be. I have a help to buy ISA with £2711, including he government bonus it equates to £3388. The deposit for the house is £3318 but a £350 reservation fee has already been paid so that brings it down to £2968. When it comes to closing my ISA, there is going to be a surplus because there’s more than enough in the ISA including the bonus. What happens with that? I understand I can only use the government bonus as the deposit so should I move some of the funds to another account so the deposit is as close to £2968 as possible including the government bonus.
Regards
Regards
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You could put down a £350 bigger deposit or I think it can also be used for some of the fees associated with buying a home (solicitors fees for example), but I could be wrong.I am a Mortgage AdviserYou 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.0
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When are you going to exchange on your purchase? You'll need to put down some money at that point.
You can use the htb ISA bonus for solicitors costs also.0 -
I thought it could only be used solely for the deposit. Either way I want to be sure I’m getting the maximum bonus, it’s my first home so I am eager to get as much back for furniture etc. Just want not too sure what happened if there is a surplus0
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The bonus will go into the pool of funds held by your solicitor ready for completion.
It will be used for the balance of any deposit and to cover solicitor fees etc whatever the rules say.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 -
There won't be any kind of surplus, when you come to exchange contractions on your home you will close your Help to Buy ISA and the bank will ask you which account you would like your ISA money put in to (not the bonus - just the actual amount you have saved in it). As mentioned by kingstreet above, your solicitor deals with the Government bonus. They will receive the bonus and you could use it towards your legal fees.
Don't take any money out of the ISA, the bonus will be calculated as a percentage of your balance on the day the account is closed.
I hope that makes sense?FTB 2017
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