Help to buy isa

pennyforthem

So the help to buy Isa is for a "habitable dwelling" My bank said this meant it had to have electricity and running water, so I pointed out that there are people living in houses all over the world including the UK that do not have electricity and running water. People still live in caves, vehicles including converted cars, yurts, boats........so what is a habitable dwelling?

pennyforthem

They also said they thought you HAVE to get a mortgage in order to access the government money? Seems somewhat unfair as not everyone can get a mortgage.

diggingdude

pennyforthem wrote: »

So the help to buy Isa is for a "habitable dwelling" My bank said this meant it had to have electricity and running water, so I pointed out that there are people living in houses all over the world including the UK that do not have electricity and running water. People still live in caves, vehicles including converted cars, yurts, boats........so what is a habitable dwelling?

According to your bank a house with electricity and running water would satisfy them

jamie_128

but help to buy isent for caves is it its for houses, what a pointless thread.

pennyforthem

Why on earth is it a pointless thread to require a definition of a habitable dwelling and if I would be required to get a mortgage to activate the Government money?
And it is not my bank handing out the money they are only supplying the Isa, which is why they have no idea what the actual details are despite the fact it has been running for years!

8ofspades

The help to buy isa is just that - a help to buy. If you can afford to buy a house without a mortgage then you don't really need it. If you can't get a mortgage and can't afford a house, how are you buying a house?

8ofspades

In answer to your question - yes a mortgage is required, and I would stress less about what habitable dwelling means and just take it that you need a mortgagable property - i.e. standard construction, no severe structural issues etc.

The help to buy isa website is helpful. https://www.helptobuy.gov.uk/help-to-buy-isa/faq/#when-is-bonus-paid


https://www.auctionhouse.co.uk/guide/what-makes-a-property-unmortgageable

pennyforthem

Thank you 8ofspades

"
Is the property I am buying eligible for the government bonus?

To qualify for the government bonus, the property you are buying must: be in the UK, have a price of £250,000 or less (with a higher price limit of £450,000 in London), be the only home you will own, be where you intend to live and be purchased with a mortgage."


It would have been easier if they had said must be eligible for a mortgage.

Because I would be going in with other people who own but are not eligible for a mortgage. Given that bungalows are cheaper than houses and there is a housing crisis you would think there would be a scheme to help OAPs sell their houses and move into their own bungalow enabling them to live self-sufficient longer, in a smaller easier to keep and run place and freeing larger properties for younger better able people. They feel that they are beyond the age to move into one that needs doing up so.......

[Deleted User]

Every lender has a different definition of habitable. The bottom of rhe market lenders who lend on anything just require cold running water. No electricity, no heating, no hot water.
It also changed depending on deposit amount, and overall risk of rhe case.

You generalise in your comment about bungalows. I presume you are in an unusual area. Bungalows are massively more expensive than houses where I am. Probably a good 20% markup at least. I find this replicated across a lot of the country.

Help to buy isa wasn't the best advertised product around. I still see people who don't know its a 250k limit. Around me that barely gets a FTB 2bed semi so people are always a bit annoyed by the lack of information given when they open them

pennyforthem

Just in case some reads this in the same boat.
https://www.moneyadviceservice.org.uk/en/articles/getting-a-mortgage-if-youre-ill-or-disabled
Consider a shared ownership scheme

HOLD – Home ownership for people with a long-term disability

HOLD is a shared ownership scheme for people with long-term disabilities and is part of the government’s affordable housing programme.
The way it works is you buy a share of a property on the open market and a housing association buys the remaining share.
The housing association negotiates with the property vendor and the mortgage lender on your behalf.
My Safe Home

Specialist provider, My Safe Home can help you buy a home if you’re disabled. It works with selected lenders on shared ownership schemes.


Not read about them yet fully but at least there's hope!

8ofspades

pennyforthem wrote: »

Thank you 8ofspades

"
Is the property I am buying eligible for the government bonus?

To qualify for the government bonus, the property you are buying must: be in the UK, have a price of £250,000 or less (with a higher price limit of £450,000 in London), be the only home you will own, be where you intend to live and be purchased with a mortgage."


It would have been easier if they had said must be eligible for a mortgage.

Because I would be going in with other people who own but are not eligible for a mortgage. Given that bungalows are cheaper than houses and there is a housing crisis you would think there would be a scheme to help OAPs sell their houses and move into their own bungalow enabling them to live self-sufficient longer, in a smaller easier to keep and run place and freeing larger properties for younger better able people. They feel that they are beyond the age to move into one that needs doing up so.......

Apologies, i hadn't considered buying with people. Bungalows tend to be more expensive as the footprint is larger so require more land for less house, unless it's smaller bungalows often built on estates specifically for the elderly.

As you're only just looking at opening an isa, I'll assume the plan is not too soon - a lot may change in a few years. I recommend opening and saving in a lifetime ISA if you're under 40. It has the same bonus for buying a house (albeit still with mortgage), or if you don't need to or can't, the money can remain with bonus until retirement or can be withdrawn forfeiting the bonus if needed for anything else.
https://www.gov.uk/lifetime-isa

Shared ownership does sound like it might be a good option, I don't know much about that. Good luck!