Help to Buy - Nationwide

disney_cjd

Hi all
My daughter appeared on the Martin Lewis Money show and asked a question about help to buy isas.  She is 18,  Nationwide was suggested as the best so she opened it up and has a few grand in there and adding £200 a month.
She received a letter today saying the rate is going from 2,5 percent to 1 percent.  So question is, 
- can she move part of it elsewhere to another ISA (help to buy or other type)
- is she stuck with it?
- seems a tad much to lob 1.5 percent off when base rate only went down .0,65
Thanks

margaretx9

She can move it to other banks and building societies which still accept help to buy isa transfers like Halifax and Santander and YBS.
Halifax are still paying 1.75%.

Nationwide are useful in that they are a split isa provider so you can invest in other cash isas too to use your £20k allowance - although their rates are now pretty poor all round.

disney_cjd

margaretx9 said:

She can move it to other banks and building societies which still accept help to buy isa transfers like Halifax and Santander and YBS.
Halifax are still paying 1.75%.

Nationwide are useful in that they are a split isa provider so you can invest in other cash isas too to use your £20k allowance - although their rates are now pretty poor all round.

Thank you - I will take a look at those for her.  Cheers

clarkster7425

I'm with virgin money - offering 2% now and just cut from 2.5%.

blue_max_3

clarkster7425 said:

I'm with virgin money - offering 2% now and just cut from 2.5%.

Are you sure? Can't see it.

MDMD

blue_max_3 said:

clarkster7425 said:

I'm with virgin money - offering 2% now and just cut from 2.5%.

Are you sure? Can't see it.

It’s probably been withdrawn from new applicants, even transfers. The only mainstream providers I’m aware of accepting transfers are YBS, HSBC (must apply by post for these) and Halifax (must call them to apply).

ratechaser

MDMD said:

blue_max_3 said:

clarkster7425 said:

I'm with virgin money - offering 2% now and just cut from 2.5%.

Are you sure? Can't see it.

It’s probably been withdrawn from new applicants, even transfers. The only mainstream providers I’m aware of accepting transfers are YBS, HSBC (must apply by post for these) and Halifax (must call them to apply).

Thank you, wasn't aware that the HSBC one was still an option, you have to scroll down the page quite a way before it mentions still being open for transfers.

1.75% puts it at the top of the pile I think, just above Halifax 

MDMD

ratechaser said:

MDMD said:

blue_max_3 said:

clarkster7425 said:

I'm with virgin money - offering 2% now and just cut from 2.5%.

Are you sure? Can't see it.

It’s probably been withdrawn from new applicants, even transfers. The only mainstream providers I’m aware of accepting transfers are YBS, HSBC (must apply by post for these) and Halifax (must call them to apply).

Thank you, wasn't aware that the HSBC one was still an option, you have to scroll down the page quite a way before it mentions still being open for transfers.

1.75% puts it at the top of the pile I think, just above Halifax 

One consideration for me is that HSBC has a higher rate but only on the first £12,000, after which the rate drops to basically nothing. Halifax pays the same rate on the whole balance.

disney_cjd

We have gone with HSBC - thanks.

margaretx9

disney_cjd said:

We have gone with HSBC - thanks.

Yes HSBC are fine for now - once the balance gets over £12,000 (which would take over four and a half years minimum from opening) they aren't such an attractive option.
But then for your daughter that will be at least two years in the future - perhaps more - so no point worrying about that now! She might well have bought her first home by then - particularly if prices come down and are cheaper for those who can still fund a mortgage.

I have to say NW's help to buy isa rate cut is appalling - the whole point of the society when founded as a mutual was to help the young and poorer to buy a home not pay big bucks to their Board of directors. When they treat customers worse than banks - you do wonder what exactly is the point of big mutuals. Many of the smaller local societies are great - but some of the big players have just go too big, complacent and arrogant!

Aidanmc

Anyone know when Nationwide interest rate reduction for the Help to Buy comes into effect? Seem to have lost the letter they sent recently!