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Help to Buy ISA cost cap with Help to Buy equity loan scheme.

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Help to Buy ISA cost cap with Help to Buy equity loan scheme.

4 replies 51 views
JohnB2020JohnB2020 Forumite
4 posts
First Post
MoneySaving Newbie

Hi,


I have looked around the forums quite a bit and haven't managed to find the answer to this, hopefully some of you helpful lot will know the details.


Both me and my girlfriend have a Help to Buy ISA which gives 25% on top of the total savings up to 12k on a property up to 250k, I know the Help to Buy ISA can be used with a Help to Buy loan scheme but what I don't know is if the 250k limit applies to the total value of the house or only the 80% on a Help to Buy loan scheme as the government loans the other 20% therefore enabling us to buy a house which has a total value of over 250k.


Where we live a 250k won't really do for our needs however if the 250k limit only applied to the 80% before the government loan this would work out perfectly.


Many Thanks in advance.

Replies

  • edited 20 February at 7:14PM
    masonicmasonic Forumite
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    edited 20 February at 7:14PM
    The limit applies to the total value of the property you are buying.
  • JohnB2020JohnB2020 Forumite
    4 posts
    First Post
    MoneySaving Newbie
    masonic said:
    The limit applies to the total value of the property you are buying.
    I was afraid of that, thank you for your reply.
  • Firsttimebuyer60Firsttimebuyer60 Forumite
    1 posts
    First Post
    MoneySaving Newbie
    We've just come across this. Our house was released for 10K more than were were expecting so we cant claim the bonus.  
  • edited 17 March at 1:51PM
    AlexlandAlexland Forumite
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    edited 17 March at 1:51PM
    If you are not buying for 12-15+ months you could consider re-wrapping the money in Lifetime ISAs which have a £450k limit as you can contribute £4k before the new tax year starting on 6th April, another £4k in the next tax year and another £4k at the start of the next one.

    Alternatively you could just wait and see what negative impact this virus has on house prices. You may be in a very good position to negotiate.
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