Help to Buy ISA

ianmackay88
ianmackay88 Posts: 11
First Post
Forumite
edited 29 June 2021 at 6:31PM in Mortgages & endowments
Would someone on here be able clarify what happens with the bonus as I'm seeing conflicting information about and it’s confusing me!

My situation
Buying house for £175k with a 5% deposit so £8,750.00. So mortgage amount is £166,250.00
I have about £5k in a Help to Buy ISA going towards the deposit so the 25% bonus would be £1,250.00

As I understand it, I have to pay the full £8,750.00 deposit and Solicitor applies for the bonus on exchange. The bonus then goes towards reducing the mortgage value required, so in my case it would be £165k. Is that correct? I wouldn't get the bonus in cash or be able to pay the deposit less the expected bonus would I?


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