Help to buy closing help?

StaceyFTB

Hi tried to seach but can’t find an answer.
Myself and my partner are not far from completion on our first property.
We have both just closed our help to buy isas and dropped in the closing statement to our solicitor. Wanted to ask her this but only the receptionist was in and she’s not the fastest with emails.
The total amount adding together of our closing balances is more than we need to cover 7.5%, the rest coming in form of the bonus. ( our sol is negotiating a lower initial deposit)
But on the closing statements it’s says the 25% is on the closing balance. But I’m guessing the government will not give us more than needed.
So am I correct in thinking the 25% bonus will be on the what we actually give as a deposit. Or should we have stopped paying in when we had enough money to cover the 7.5%.
TIA
Stacey

masonic

You'll get the full 25% bonus, any excess funds will be used towards the balance of the purchase, meaning a slightly smaller mortgage is needed.

Technically, I don't believe it is explicitly stated anywhere that the whole of the closing balance of the ISA needs to be put towards the property purchase, but the whole bonus does. You can check with your solicitor how to proceed once the bonus value is known as I presume you've not yet transferred any funds. Some interpret the rules differently than others.

StaceyFTB

Thanks for your reply. Initially we thought we’d get a more expensive house hence paying more into them. But We want to use some of the funds from the two isas towards furniture etc. So hopefully we won’t have to use all of it. And still claim the bonus ok. Or worst case just use one which has close to what we need and disregard the other and bonus. And just use the cash saved. But your right seems to depend who you ask regarding these isas.

PaulJA

Has anyone else been in this situation?

What happened as a result? Smaller mortgage taken?