Help to buy ISA

CraigSavage

I’ve currently got a help to buy isa, I went into my bank yesterday and they told me not to close them and for me to just give my solicitor the account number and sort code? Is that right?

Meehash

If you want to receive the 25% bonus, your solicitor must claim it in your name. You can close it yourself and get the money, but no bonus.

orisava29

you will need to close your Help to Buy ISA account with your bank first and get Closing Statement from your bank.
This document might be sent through the post or you can get it from the branch which depends on the bank. Once you get this Closing Statement from your bank it would appear the closing balance of your saving that amount is the amount that your solicitor needs to see and claims the bonus on your behalf from the government. You will need to give your solicitor a closing statement and completed statutory declaration from your bank which they will give you when you close Help to Buy ISA.
The bonus will only be paid your solicitor once the completion transaction done.
When you close your account you can touch that money (your saving+interest) that amount of money will be transferred your current account to purchase for your first home.

My partner and I have just done this last Friday.

Lucky_Gonk

Does the solicitor tend to take the bonus off their final bill, or do you have to pay their bill in full before complettion and they then just send you on you bonus amount?


If the later then I guess they also charge you for processing this?

orisava29

>>> Lucky Gonk

Our solicitor did not charge us extra on top from what we agreed to pay their fees at the first place.
They gave us a quote of their fees before we signed engagement contract.

Our bonus from the government we get 25% from what we saved up in Help to Buy ISA we both got £1,500 each so it became £3,000 this amount got deducted from our deposit on exchange, we made an agreement to pay 10% for our deposit (10% deposit minus £3,000) on exchange of contracts.
Once our purchase went through we completed with in 2 weeks after exchange our solicitor got £3,000 and paid this bonus to the seller’s solicitor towards the purchase plus another 90% mortgage from our lender.

all you have to do is speak to your solicitor and i am sure he/she will explain about the bonus to you very clearly.

Sunshine012

I was wondering if this is regular process.

I went to Natwest branch to close my Help
to buy ISA account.
I received the" confirmation of instruction account closure" and my funds have been moved into different account.
I have been told that I will receive the Closing Balance Statement within 5 working days and than I can claim my bonus via my solicitor.

I worry that my funds have been transferred and I will receive £0 closing balance.
Is this regular process?
I spoke to Natwest Queries and they seem to say that is how it all works but I read few threads and it seems the funds should have not been touched.

Please let me know what you think.

hunte78

We closed ours last month in branch at Halifax. We gave details of an account to pay the funds in to (one of our other accounts) and received our closing statement there and then. Our solicitor has now received confirmation from the government that our bonus has been confirmed and authorised. Not sure on Natwest process but the account certainly needs fully closed but you should receive an official closing statement specific to HTB ISA.

Sunshine012

Just to clarify,did you get access to your funds there and then when you closed the account?

hunte78

Not the bonus. But the amount saved in the ISA was transferred to another current account we have.

Our closing statement showed the amount at the time of closing, the teller also calculated the due interest to date of closing and that was added to the final total. The closing letter you give to your solicitor should show all the figures and details of the account the funds we transferred to.

Sunshine012

I meant the funds saved at Help to Buy ISA.
The solicitor offered that the bonus can go towards lowering exchange deposit.
I got really worried today that my savings from ISA were moved to another savings accounts and I thought that the money must stay at the account until you receive the closing statement.
Natwest only sends the statement via post within 5 days.

hunte78

In order to close the account they have to move the funds out, the closing statement then shows the balance at the time of closing.

As far as I am aware the bonus cannot be used towards your exchange deposit, only towards the remaining deposit paid at the time of completion. For example, our exchange deposit was £2000, we paid this from normal savings, the remaining deposit due at completion (to make up our 10% deposit) will then include our bonus. Our solicitor applied for the bonus and has agreed a date for the government to transfer it to their holding account, so the bonus funds will never come to us directly.

Sorry if it doesn't make sense.