Help to Buy ISA guide
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Does anyone know what happens if you purchase a property worth over £250,000? That is below my anticipated spend, but I can't seem to find any information on what happens if I have got a first time buyer ISA and want to spend more that £250,000. Can anyone advise?
Thanks0 -
If you have a HTB ISA and wish to claim the bonus the property price limit is 450k in London or 250k outside London.
If you purchase a property worth more than 250k outside London you will not be able to claim the HTB ISA bonus. You can still withdraw the contributions and interest without penalty.
If buying outside London at a price between 250k and 450k then consider a Lifetime ISA which also has a 25% bonus but read the terms carefully.
Alex0 -
Can anyone tell me if it's worth getting the Nationwide HTB over Barclays/ Natwest because of the 'save to buy' mortgages? Or if I would still have access to this if I switched to the Nationwide HTB at a later date? I'm just trying to decide which one would be best to open.0
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Good morning all,
Im looking in to opening a H2B ISA and understand that in the 1st month you can put in the maximum amount of £1,200, followed by £200 per month thereafter, amounting to an annual total of £3,400.
How is it possible to achieve the amount of £12,000 with a max. bonus of £3,000, when you can only put in £200 for 11 months?
Please may you further advise?0 -
It's not a 12-month product, it can be used for many years, so you can pay in up to £3,400 in year one, then up to £2,400 in each subsequent year. With interest earned on top of maximum contributions, you'd reach £12K about halfway through year five....Im looking in to opening a H2B ISA and understand that in the 1st month you can put in the maximum amount of £1,200, followed by £200 per month thereafter, amounting to an annual total of £3,400.
How is it possible to achieve the amount of £12,000 with a max. bonus of £3,000, when you can only put in £200 for 11 months?0 -
Thank you eskbanker!
Ive been researching for over a month now and going round in circles a bit! I initially was going to go for a LISA; £4,000 lump sum +£1,000 bonus, wanting to buy within the next 1-2 years.
If only money just doubled!
If I had more than £4,000 to put in this year, where else could I put the rest of my savings at the same time with high interests, would a cash ISA be the best option do you know?
Thanks again0 -
Hi,
Remember the £4k LISA contribution limit (and the overall £20k ISA limit) is measured across the tax year (ending on 5th April). As such you can contribute £4k in the next nearly 6 months and then a further £4k from 6th April 2020 onwards. Remember the LISA needs to be open 12 months before it can be used without penalty for a qualifying property purchase.
After filling the LISA each tax year you might still find a HTB Cash ISA useful (if you open one before the deadline) for the higher interest rates even if you do not intend to claim a HTB ISA bonus.
Alex0 -
Hi,
I've been trying to find my answer in this thread and via various other research but it's information overload! Hoping one of you kind souls can help.
Im at the start of my first time buyer journey i.e. not even saved a penny but am now ready to.
I want to save around £1k a month and be in a position to buy next year.
I want to open up a H2B ISA but aware you can only save £200 a month (£1200 in the first month), not really enough to make up a decent deposit in only a years time.
So, I want to open another savings account elsewhere for the remainder of my savings. At first I thought I could not do this unless I opened a "split" H2B ISA with one of the few banks who allow this. However, all their cash ISA's interests are soooooo low!! NatWest for example is 0.20% for savings up to 10k.
I have now realised, or I think I have, that I CAN have another savings account with a normal H2B ISA as long as said savings account is NOT an ISA. Is this correct? And if so can anyone suggest the best option / account here? Something that will allow me to save up to around £20k (unrealistic but just in case) and use in the space of a year with a decent interest rate.
As for the H2B, I've been looking into Penrith Building Society. They offer a rate of 3% which looks better than anywhere else. Has anyone had experience with them? And they definitely let you have another account in conjuction with (again only if not an ISA)?
Thank you very much in advance,
Leigh!0 -
Hi,
I've been trying to find my answer in this thread and via various other research but it's information overload! Hoping one of you kind souls can help.
Im at the start of my first time buyer journey i.e. not even saved a penny but am now ready to.
I want to save around £1k a month and be in a position to buy next year.
I want to open up a H2B ISA but aware you can only save £200 a month (£1200 in the first month), not really enough to make up a decent deposit in only a years time.
So, I want to open another savings account elsewhere for the remainder of my savings. At first I thought I could not do this unless I opened a "split" H2B ISA with one of the few banks who allow this. However, all their cash ISA's interests are soooooo low!! NatWest for example is 0.20% for savings up to 10k.
I have now realised, or I think I have, that I CAN have another savings account with a normal H2B ISA as long as said savings account is NOT an ISA. Is this correct? And if so can anyone suggest the best option / account here? Something that will allow me to save up to around £20k (unrealistic but just in case) and use in the space of a year with a decent interest rate.
As for the H2B, I've been looking into Penrith Building Society. They offer a rate of 3% which looks better than anywhere else. Has anyone had experience with them? And they definitely let you have another account in conjuction with (again only if not an ISA)?
Thank you very much in advance,
Leigh!
There is no restrictions due to help to buy isa on having non isa savings accounts.
https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/
If you are going to be using this money to buy in >12 months time a lifetime ISA would likely be better for you (has to be open for 12 months for you to be able to use for house purchase).
You would be able to fund with 8k between now and next year, giving a 2k bonus (higher bonus than using HTB).
https://www.moneysavingexpert.com/savings/lifetime-isas/0 -
Thank you.
I actually hope to buy within the next year and I am aware there are penalities for removing before 12 months with a LISA. They also have lower interest rates and still only let you save a small amount per year. I'd still need an additional savings account with this option. I'll look at the savings acounts link you sent.
Thanks again0
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