Help to buy ISA, but buying over the limit

silvercar

What happens to a help to buy ISA if you are buying over the limit. Qualifying in all other respects other than the purchase price, so I expect there won’t be a government bonus. Is there any other penalty on withdrawing the money saved?

badger09

silvercar said:

What happens to a help to buy ISA if you are buying over the limit. Qualifying in all other respects other than the purchase price, so I expect there won’t be a government bonus. Is there any other penalty on withdrawing the money saved?

Unlike LISA*, there is no penalty for using HTB ISA for something other than house purchase (or for house purchase over the HTB limit). Obviously, as you know, no bonus added.

(* or retirement, but that's not relevant to question) 

silvercar

badger09 said:

silvercar said:

What happens to a help to buy ISA if you are buying over the limit. Qualifying in all other respects other than the purchase price, so I expect there won’t be a government bonus. Is there any other penalty on withdrawing the money saved?

Unlike LISA*, there is no penalty for using HTB ISA for something other than house purchase (or for house purchase over the HTB limit). Obviously, as you know, no bonus added.

(* or retirement, but that's not relevant to question) 

Thanks.

in that case it may well be worth cashing it in, adding it to a savings account and not have the solicitor  have to deal with HTB.

MovingForwards

The solicitor doesn't deal with H2B if you're only using your saved part and not the bonus. All I did is transfer mine to my current account and tell my bank to close the account as I wasn't claiming the bonus for my purchase.

dimbo61

I did think that with the HTB ISA you had a limit of £250,000 in the rest of England and £450,000 in London.
I also believe the LISA ISA has a higher limit of £450,000 on the purchase price.
Please correct me if I am wrong.
Now you could open a LISA and pay in £4,000 each before March 31st and the same in April and get £2/4,000 government bonus if you open 2 or 4 LISA,s 
You need to wait 12 months after you have opened the LISA,s 

badger09

silvercar said:

badger09 said:

silvercar said:

What happens to a help to buy ISA if you are buying over the limit. Qualifying in all other respects other than the purchase price, so I expect there won’t be a government bonus. Is there any other penalty on withdrawing the money saved?

Unlike LISA*, there is no penalty for using HTB ISA for something other than house purchase (or for house purchase over the HTB limit). Obviously, as you know, no bonus added.

(* or retirement, but that's not relevant to question) 

Thanks.

in that case it may well be worth cashing it in, adding it to a savings account and not have the solicitor  have to deal with HTB.

As MovingForwards says, solicitor doesn't get involved if no bonus being claimed. Check the interest rate on the HTB ISA and compare with best available elsewhere. Might be better to leave where it is and withdraw to current account shortly before its needed.

silvercar

dimbo61 said:

I did think that with the HTB ISA you had a limit of £250,000 in the rest of England and £450,000 in London.
I also believe the LISA ISA has a higher limit of £450,000 on the purchase price.
Please correct me if I am wrong.
Now you could open a LISA and pay in £4,000 each before March 31st and the same in April and get £2/4,000 government bonus if you open 2 or 4 LISA,s 
You need to wait 12 months after you have opened the LISA,s 

Correct AFAIK.

Offspring buying in London where 450k won’t get you more than a studio flat.