Help to Buys ISA Bonus - Overpayment or Deposit?

Hi all,
So I've looked high and low for this but can't find a definitive answer anywhere.
O/H and I are days away from exchanging and due to complete middle of June on a house purchase, FTB's!!!
We both have our HTB ISA's which are now closed and documentation is with our conveyancer. Exchange deposit is with them too.
Now my question is;
The agreed house price is £200k. We've sent 10% exchange deposit {£20k} to our conveyancer. We're 90% LTV, so our mortgage will be £180k. When we complete, I know our HTB ISA bonuses will be used towards the mortgage. We each have ~£1300 due in bonus. Now does this bonus, when paid to the Lender, act as an overpayment on the mortgage of £180k, or is it used as part of our deposit; i.e. we are now putting forwards £20k + ~£2600 = £22600 as our deposit and therefore the mortgage we are taking out is now £177,400 and therefore improving our LTV?
I hope I'm making sense!
TIA.

Comments

  • eskbanker
    eskbanker Posts: 29,932
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    oneilld3 said:
    Now does this bonus, when paid to the Lender, act as an overpayment on the mortgage of £180k, or is it used as part of our deposit; i.e. we are now putting forwards £20k + ~£2600 = £22600 as our deposit and therefore the mortgage we are taking out is now £177,400 and therefore improving our LTV?
    The £2,600 HTB ISA bonuses need to be paid towards the value of the property, so you'll only need a mortgage of £177,400 to cover its purchase, i.e. the bonus isn't paid to the lender as such, it's paid via your conveyancer to the seller.
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