Help to Buy ISA advice

lew_b1990

Hi,

I'm looking at potentially buying a house in the next few months, but I am unsure exactly how the 25% bonus works. My understanding is that you receive the 25% after the sale of the house has gone through. If this is the case, does this mean that for example if I buy a house for £100,000 and put down a 10% deposit I would need to put down £10,000 (and receive £2500 as a bonus) or could I potentially put down £8000 and add the 25% bonus to the contribution of the deposit.

If someone could help answer this I would be massively grateful - as i've been told different things from different people and it has confused me. Thank you  

masonic

For the HTB ISA, the conveyancer applies for the bonus using the closure statement issued by your provider. These funds must be used towards the mortgage deposit at completion. Any deposit at exchange must be funded by you. You may be able to negotiate this down, but that is for the seller to agree or not. Either way the bonus will be based on the final value of the HTB ISA at closure and this will be added to any funds you have already committed to the purchase.

lew_b1990

Great. I thought this was the case, but I wasn't too sure. Massive thank you for clearing this up for me