Help to buy isa

amoneysaver1993

Hello I'm in the process of buying a shared ownership flat 155,000 30% share (£46,500) I'm able to purchase the 30% out right with no mortgage. I also have a help to buy isa with 12,000 in it. I was told the help to buy isa bonus won't work with deposit. Should I just take the money from my isa and place it in my current account if I can't get the bonus towards my deposit. 

Tiglet2

amoneysaver1993 said:

Hello I'm in the process of buying a shared ownership flat 155,000 30% share (£46,500) I'm able to purchase the 30% out right with no mortgage. I also have a help to buy isa with 12,000 in it. I was told the help to buy isa bonus won't work with deposit. Should I just take the money from my isa and place it in my current account if I can't get the bonus towards my deposit. 

You cannot get the bonus towards your exchange deposit, which is the bit you pay to secure the property when you exchange contracts, but if you withdraw your ISA funds without following the correct procedure, you stand to lose £3,000 of free money, see below:

I think the HTB ISA scheme rules were that you had to be purchasing with the aid of a mortgage.

Have you told your solicitor that you have a HTB ISA?  When you are near to completing, your solicitor should let you known when to close the HTB ISA.

You'll need to withdraw all your funds and ask the HTB provider for a closing statement.  Don't close the account without asking for the closing statement - it is needed in order for your solicitor to apply for the bonus!

Once you've got the closing statement, give it to your solicitor.  The solicitor applies for the bonus from the Government.

The bonus goes straight to your solicitor.  The bonus doesn't get paid directly to you.  Your solicitor uses the bonus towards your completion costs, towards additional mortgage deposit/costs, solicitor fees etc.  It won't help with the initial exchange deposit, but £3,000 is still a big help.

Myci85

Are you able to buy a bigger share with a mortgage so that you get the isa bonus? 

Tiglet2

I'm assuming you are a first time buyer, yes?  Getting a mortgage would allow you to receive the bonus.

Is it a new build?  If so, you would need to check with the developer what shares are available to purchase.