The Skipton just robbed my daughter of 3K for a simple mistake

masonic

Alexland wrote: »

I don't think bowlhead's popular post is suggesting you 'double dip' but more outraged at my suggestion that this might be possible in post #5. Is there anything in your closure statement to suggest that you transferred to a LISA?

I worded it sloppily, but I used "suggestion" to indicate the 'double dip' was in the manner he described.

Edit: Missed the second question. My closing letter states at the bottom: "The total closing balance as shown in the table has been transferred to your external ISA as requested by you". Nothing to suggest this was specifically a LISA.

I expect most people saving for their first property might not also be in a position to also allocate a lump sum towards retirement. Even if they did then they then this might cause them not to have a big enough deposit to get access to the best interest rates. Are you seriously considering trying this? I just can't see where in the product rules this would get you into hot water.

No I'm not considering it, it was merely a thought experiment. I'm unlikely to buy in the short term. I saved in my HTB ISA for the interest rate and transferred to a LISA with the view that I'd probably hold it until retirement. But this may be a loophole the more wealthy can exploit. It's worth remembering property isn't expensive everywhere, £100k would get me more than enough house where I am.

Also, there have been several posts from people holding LISAs asking if a mortgage is really required, because they'd be in a position to buy outright (for example with parental help).

masonic

So I have now looked through the The Individual Savings Account (Amendment No. 2) Regulations 2017 and the HTB ISA Scheme Rules and I concur with Alex that there is nothing in them that prohibits someone from BOTH

1) Making a transfer from a HTB ISA to a LISA in the 2017/18 tax year, and then
2) Using their HTB ISA closure document to apply for and use the HTB ISA bonus towards a property purchase within one year of closing their HTB ISA

This would prevent them from using the LISA towards the purchase, but would not prevent them from keeping the LISA bonus and accessing it penalty free at 60.

kidmugsy

RickyM64 wrote: »

I am an angry father

Why so modest? You are an angry, ranting, strident, ear-splitting, howling, obstreperous, loudmouthed, explosion of a father.

gwapenut

RickyM64 wrote: »

and the rest of you even more for having no sympathy and nothing useful to offer other than smugness

On the contrary, you should be ashamed for libelling the Skipton with your thread title.

Have you ever considered that you might have had a little more sympathy if you had not gone down the route of senationalism and refusing to take any personal responsibility for the breach of the legislative conditions?

I'm certain in my own mind that your approach has fostered most of the lack of sympathy.

To illustrate the sensationalism - your daughter only lost £500 of her own money, not £3k. The other £2500 was money to which she was not entitled, morally or legally, because she did not meet the conditions of the government scheme.

RickyM64

Thanks Alexland my daughters solicitor made the claim and the Halifax confirmed they will pay the bonus on the original HTB ISA closure amount. (Not sure she is in a position to double dip as she needs the money for her deposit and had already withdraw it from the LISA).

And for all of those people who think this is unfair on the Skipton I would counter argue that they are at least guilty of giving very poor, very late advice. If Alexland is aware that you can still claim the bonus on the transferred HTB ISA why are the Skipton not aware of this and why were they so adamant my daughter had lost her entire savings bonus rather than just the part contributed to the ISA. To be honest it was this part that made me angry in the first place, I could understand losing the bonus on the part contributed to the LISA, but being penalised for the original savings seemed unfair over a simple mistake. As it happens it seems the government concurred even maybe by accident.

And if the Skipton do not know this then they should, because most young people in this situation would maybe not have the benefit from a ranting Father in a money saving forum.


Thanks and bye

Alexland

To be fair Skipton don't offer advice or HTB ISAs so they were probably just commenting on their LISA product rules. Anyway glad we have been able to resolve the problem for you.

Aylesbury_Duck

RickyM64 wrote: »

Thanks Alexland my daughters solicitor made the claim and the Halifax confirmed they will pay the bonus on the original HTB ISA closure amount. (Not sure she is in a position to double dip as she needs the money for her deposit and had already withdraw it from the LISA).

And for all of those people who think this is unfair on the Skipton I would counter argue that they are at least guilty of giving very poor, very late advice. If Alexland is aware that you can still claim the bonus on the transferred HTB ISA why are the Skipton not aware of this and why were they so adamant my daughter had lost her entire savings bonus rather than just the part contributed to the ISA. To be honest it was this part that made me angry in the first place, I could understand losing the bonus on the part contributed to the LISA, but being penalised for the original savings seemed unfair over a simple mistake. As it happens it seems the government concurred even maybe by accident.

And if the Skipton do not know this then they should, because most young people in this situation would maybe not have the benefit from a ranting Father in a money saving forum.


Thanks and bye

That's quite some climbdown from "Skipton robbed my daughter of £3k". Your ears must have been popping like crazy.

Alexland

Also it's a shame she has needed to withdraw the money as there might have been the possibility to 'triple dip' the money by recycling it into a pension between age 60 and 75 for further taxpayer funded benefits.

Its worth someone doing this sequence just to annoy Bowlhead :-)

Alex

MrsWenger

[QUOTE=RickyM64;74613989

Thanks and bye[/QUOTE]

I do hope the “bye” part is factual and permanent as it will save me ignoring you.

I am pleased that contributors have helped with advise that has benefited your daughter but so much about your attitude beggars belief.

Thank goodness people with your approach are few and far between on this forum.