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HTB ISA bonus?
WiseOwl00
Posts: 118 Forumite
Me and my partner are both FTBs in the process of buying a house. We've had our mortgage offer and searches back, and now at the enquiry stage, so getting close to exchange/completion (aiming end of January/February time). I'm just getting a bit confused where our HTB bonus is going to go.
So the house value is £200,000 (rounded for ease of explanation), and we've got a mortgage offer for a 90% LTV. We both have HTB ISAs and will be eligible for a combined bonus of £1750 (again, rounded). So, when we exchange, I'm assuming we will be giving the standard 10% deposit of £20,000 to the vendor. I understand we can't use the bonus for this, so we will need to use our own savings. We do have the full amount in cash, thus aren't relying on the bonus. We will then only owe the solicitor fees on completion, which we can't use the bonus for either. So as we will have already paid the full 10% deposit at exchange, where will the bonus actually go?
Could we slightly lower the exchange deposit to say 8-9%? That way we could actually use the bonus for the deposit. I know this would depend on the vendor agreeing to a lower exchange deposit. If not, do we lose the bonus or does it go somewhere else? I'm going to email my solicitor about this, but it would be useful to know if anyone has been in a similar situation or knows from experience.
So the house value is £200,000 (rounded for ease of explanation), and we've got a mortgage offer for a 90% LTV. We both have HTB ISAs and will be eligible for a combined bonus of £1750 (again, rounded). So, when we exchange, I'm assuming we will be giving the standard 10% deposit of £20,000 to the vendor. I understand we can't use the bonus for this, so we will need to use our own savings. We do have the full amount in cash, thus aren't relying on the bonus. We will then only owe the solicitor fees on completion, which we can't use the bonus for either. So as we will have already paid the full 10% deposit at exchange, where will the bonus actually go?
Could we slightly lower the exchange deposit to say 8-9%? That way we could actually use the bonus for the deposit. I know this would depend on the vendor agreeing to a lower exchange deposit. If not, do we lose the bonus or does it go somewhere else? I'm going to email my solicitor about this, but it would be useful to know if anyone has been in a similar situation or knows from experience.
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Comments
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The solicitor will require the full 10% deposit in order to exchange. The solicitor applies for the bonus plus also lets you know how much money is needed in time for completion (they should send you an Account Projection). The monies coming from the bonus, your mortgage funds, any other things you have to pay for - solicitors fees/land registry fees/contributing more than a 10% deposit - all need to be with the solicitor before completion can take place. Once everything has been accounted for, if there is a credit balance, they will then send that to you a few days after completion. What you then do with the money is up to you.0
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