Help to buy isa - ISSUE

IanMcMelt

Hi all

I recently bought a flat through help to buy. One of my saving accounts was a help to buy isa. Around 2 months ago when we were nearly completion my solitor asked me to get a closing statement from the bank, I did this but when I completed I didn’t receive my bonus which I thought was odd, so I contacted my solitor and they said that because I withdrew the funds I cannot claim the help to buy isa bonus.
When I went to the bank they had to withdraw the funds into my savings then close the account. This was the statement that was provided but my solitor is claiming that I cannot receive the bonus as I withdrew from the account.

All the money out of the help to buy isa was used as deposit for the property. I really don’t know what to do as I’ve not seen this issue anywhere online.

Any help?

foxy-stoat

Have you read up on how the Help To Buy ISA works?

Did you have at least £1600 in the savings account?

Did your solicitor apply for the bonus when you completed? It sounds like you withdrew the funds yourself rather than the solicitor doing what they need to do to get the bonus.

KatrinaWaves

You cannot withdraw the funds, you need to close the account and give the statement to your solicitor. They then claim the bonus from the government.

Depending on what you asked the bank to do/the advice they gave you it may be worth raising a complaint.

I never got the money from my HTB ISA in my bank account it went straight to the solicitor.

IanMcMelt

I just went with what the bank told me to do I never knew it would interfere with my bonus. The person at the bank that delt with the closing of the account seemed quite confused by it all. Like you said I think I'm going to have to complain to the bank if I cannot get my bonus

KatrinaWaves

Check your banks website, most have advice on how to close the HTB ISA. Check that both you and the bank followed the guidance there.

The issue is there is two ways to close it, and both can be correct in different circumstances.

IanMcMelt

KatrinaWaves wrote: »

You cannot withdraw the funds, you need to close the account and give the statement to your solicitor. They then claim the bonus from the government.

Depending on what you asked the bank to do/the advice they gave you it may be worth raising a complaint.

I never got the money from my HTB ISA in my bank account it went straight to the solicitor.

foxy-stoat wrote: »

Have you read up on how the Help To Buy ISA works?

Did you have at least £1600 in the savings account?

Did your solicitor apply for the bonus when you completed? It sounds like you withdrew the funds yourself rather than the solicitor doing what they need to do to get the bonus.

I don't want to get into the specifics of how much was in the account but it was over the amount you've quoted. When I was nearing completion my solictor told me to close the account and give them the closing statement. The person in the bank wasn't sure where to put the money after she closed the account so suggested putting it into my other savings account, so she transffered it over. If I'd have known it would've been an issue none of this would've happened, I just want to know is there anything I can do now? Seems unfair

KatrinaWaves

Did you get a closing statement and give it to your solicitor? They shouldnt have provided a closing statement if you did not close the account in the right way for the bonus (its a proper document, not just a bank statement)

IanMcMelt

KatrinaWaves wrote: »

Did you get a closing statement and give it to your solicitor? They shouldnt have provided a closing statement if you did not close the account in the right way for the bonus (its a proper document, not just a bank statement)

I did yes. They then told me that I wouldn't be receiving the bonus as it doesn't show any money in the account still. The funds were transferred into my other savings account and the help to buy isa was closed. Just to double check I can put a picture of the statement I gave the solicitor on here

ACG

Speak to the bank, if unable to help put in a complaint to the bank.
If they can not help, take it to the financial ombudsman.

Looking at this from a fainress perspective, you would expect the bank to know what to do and not the customer. The whole point of the HTB ISA is to help first time buyers, so it is not surprising you did not have a clue what to do as it will be the first and only time you do it.

foxy-stoat

So you didn't read up on the paperwork you would of got which tells you how to close it and get the bonus?

I would do a complaint and see how you go - you may get something.

IanMcMelt

Just to update this: Today my solicitor told me that the help to buy bonus has now been accepted. I'm not sure whether they did some legwork or originally didn't put my application through properly but its now going ahead.