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Help to buy isa
Emma_brown96
Posts: 18 Forumite
Hello! So me and my partner are in the process of buying a house (we’re nearly at the exchange on contracts point) and I’m just wondering if anyone actually understand the help to buy isa, because I’m so confused by it all!
When we applied for our mortgage, we planned for a 10% deposit from our own money to cover the exchange deposit and then added the government bonus on to that to give us our mortgage deposit. Obviously since we applied we’ve saved more money into our help to buy isas so we’re a bit confused about where the extra bonus goes? We’ve been told by some people that it comes off of our solicitor fees, but the gov website says that isn’t allowed. We still need the 10% of our own money to cover the exchange deposit, so it’s not like it can be used in place of our own money either
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Comments
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Your solicitor will keep an account of all the fees and charges needed for you to purchase the property. It will list the purchase price of the property, along with their own fees plus any other fees such as the Land Registry fee, any fees associated with leasehold or freehold with management company. There will be some fees you need to pay up front and others that can be added to the account.
When your solicitor is ready to exchange, they will need the 10% deposit in advance, i.e. on a £200k property, they will need £20k paid to them before they can exchange. They will advise you to close your HTB ISA and the monies held in the ISA will be transferred to you, which you then transfer to the solicitor as your deposit. Your solicitor will need you to provide the closing statement for that ISA. Once you have exchanged, they will apply to the HTB scheme for the bonus. The bonus is paid to the solicitor after exchange and before completion and will be added to the account. Any remaining monies needed for completion will need to be paid, but the bonus will reduce how much you need to send over.
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Brill thank you. I thought it would be something like that. If we have more bonus left than the remaining balance that we owe the solicitor, will we just lose the extra bonus money?0
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Any surplus monies will be returned to you after completion.1
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