First time buyer isa - have we wasted our time?

Tina_and_Leo

Hi All,

New to MSE, Thanks for all the helpful info on here. Unfortunately I haven't found a thread answering our question, who is nothing ever straight forward?! Hope you can help clear up any confusion. Sorry for the long post, bear with!

We have a HtB ISA, well my (now) husband does, that we have both been paying in to for 3 years (I transfer money to him to pay in). I fall into what feels like the starting again "unclean" bracket of not being a FTB due to owning a property over 10 years ago but renting ever since. (Separation/lost money/never got back on ladder scenario). I therefore know, from reading here that we are not entitled to a FTB mortgage if I'm on it, we are not entitled to FTB Stamp duty relief if I'm involved and I'm now wondering about my husbands HtB ISA.

We could get a FTB mortgage in his name only to benefit from all the FTB perks but then I'm not legally an owner of our first home together.

We could disregard any FTB perks and buy our house together with a normal mortgage and pay stamp duty but where does that leave the HtB ISA Leo would be using towards it? Would he still benefit from the government subsidy if he is using it towards a mortgage with me.

When we first looked at it years ago we thought he might get a mortgage just in his name but now we're married (woo hoo!) it looks like it might have changed things? I kno we won't have lost the money we put in but we were hoping for the "help" part too!

To add bit more confusion, sadly Leo lost his single Uncle recently but the house he lived in was half owned by his Dad. We have been asked if we want to buy the other half to buy out his cousins to get us on the ladder which is an amazing opportunity at a sad time.

If anyone can help give some clarity it would be great,

T&L

HampshireH

Here is MSEs HTB isa article which we clarify for you

https://www.moneysavingexpert.com/savings/help-to-buy-ISA/

Pixie5740

Tina_and_Leo wrote: »

Hi All,

New to MSE, Thanks for all the helpful info on here. Unfortunately I haven't found a thread answering our question, who is nothing ever straight forward?! Hope you can help clear up any confusion. Sorry for the long post, bear with!

We have a HtB ISA, well my (now) husband does, that we have both been paying in to for 3 years (I transfer money to him to pay in). I fall into what feels like the starting again "unclean" bracket of not being a FTB due to owning a property over 10 years ago but renting ever since. (Separation/lost money/never got back on ladder scenario). I therefore know, from reading here that we are not entitled to a FTB mortgage if I'm on it, we are not entitled to FTB Stamp duty relief if I'm involved and I'm now wondering about my husbands HtB ISA.

We could get a FTB mortgage in his name only to benefit from all the FTB perks but then I'm not legally an owner of our first home together.

We could disregard any FTB perks and buy our house together with a normal mortgage and pay stamp duty but where does that leave the HtB ISA Leo would be using towards it? Would he still benefit from the government subsidy if he is using it towards a mortgage with me.

When we first looked at it years ago we thought he might get a mortgage just in his name but now we're married (woo hoo!) it looks like it might have changed things? I kno we won't have lost the money we put in but we were hoping for the "help" part too!

To add bit more confusion, sadly Leo lost his single Uncle recently but the house he lived in was half owned by his Dad. We have been asked if we want to buy the other half to buy out his cousins to get us on the ladder which is an amazing opportunity at a sad time.

If anyone can help give some clarity it would be great,

T&L

No you haven't wasted your time, or rather your husband hasn't wasted his time saving into a HTB ISA. See link given in post about.

Unlike the government, many lenders give you your housing buying virginity back if you haven't owned property for a while so you'll probably qualify for a FTB mortgage if you jointly apply. That's assuming a FTB is the best mortgage for you. As a married couple you will find it difficult to find a lender who will accept only one of you on a mortgage for a property that you will both live in. You're borrowing power will also be reduced.

As for FTB SDLT relief your husband would qualify if he bought on his own but buying on his own will limit the number of mortgages available. For the sake of saving a few quid (I know this is a money saving site) on SDLT I would jointly buy the property even if it meant losing the relief.