ISA / Saving / Help to buy

I’m so confused :eek:

My wife and I currently rent and are just starting in the journey to save to buy our first house.

I already have an Instant cash ISA with around £10k in. I have just set up a “help to buy ISA” for my wife and will be putting the maximum amount into that (£1200 followed by £200 a month)

I have been rejected opening a Help to buy iSA in my name due to already having an ISA. So I need to move the money from my current ISA. I bank with Lloyd’s and would prefer to stick with Lloyd’s. Where am I best putting the £10k from the old ISA? Monthly saver?

Also once I close the ISA. When can I open the help to buy ISA?

Any good advice would be greatly appreciated.

Thanks

Comments

  • kidmugsy
    kidmugsy Posts: 12,709
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    (i) Don't close the ISA. If you must, transfer the ISA but don't close it.

    (ii) I assume you have been rejected because you have contributed to that ISA in this tax year 18/19? How much have you paid into the ISA in 18/19?

    (iii) Before you do anything drastic check the Lifetime ISA (LISA). It may anyway suit you better than either an ordinary Cash ISA or an HTB ISA.

    (iv) Probably the best LISA for you is a Cash LISA. The two providers are Skipton BS and Nottingham BS. The interest rate is unexciting but the bonus from the taxpayer is highly desirable. If I were you I'd open one and I might consider whether your wife should have one too.
    Free the dunston one next time too.
  • Alexland
    Alexland Posts: 9,653
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    edited 30 September 2018 at 12:15PM
    Yes as above the Skipton Lifetime ISA is allowed alongside a traditional Cash ISA and is likely to be more suitable for your purpose provided you are currently under 40, will be saving for at least a year before making a qualifying property purchase below £450k.

    You can each have a LISA and each add £4k at any time during each tax year (no monthly limits) for a 25% bonus. Ensure you read the T&C's carefully before opening.

    I would skip Nottingham as Skipton have been in the market longer, the rate is the same and we know from many forum threads they are pretty competent in LISA administration. We have not yet heard feedback from a Nottingham LISA customer.

    Alex
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