Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Former MSE Sam M
    • By Former MSE Sam M 1st Dec 15, 3:23 PM
    • 238Posts
    • 159Thanks
    Former MSE Sam M
    Help to Buy ISA guide
    • #1
    • 1st Dec 15, 3:23 PM
    Help to Buy ISA guide 1st Dec 15 at 3:23 PM

    Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
Page 95
    • torncurtain
    • By torncurtain 11th Oct 19, 1:43 PM
    • 52 Posts
    • 0 Thanks
    torncurtain
    As long as they don't go over their allowed amount of total savings while on this benefit, I think you're correct. At least this is what I understand. My family member asked the DWP, they didn't provide a clear answer. They said they didn't think it would be a problem but that they didn't know, which isn't helpful.
    • Rich2808
    • By Rich2808 11th Oct 19, 2:12 PM
    • 897 Posts
    • 706 Thanks
    Rich2808
    As long as they don't go over their allowed amount of total savings while on this benefit, I think you're correct. At least this is what I understand. My family member asked the DWP, they didn't provide a clear answer. They said they didn't think it would be a problem but that they didn't know, which isn't helpful.
    Originally posted by torncurtain
    I believe on income related ESA a working age person can have 6,000 in savings before the benefit is scaled back with full loss of benefit once savings exceed 16,000.

    Even if you paid in the maximum allowed at the start and per month it would take over two years to reach a balance of 6,000.

    Of course unless the person is buying in a cheaper part of the UK its hard to see how you could buy a home except with shared ownership with a deposit of less than 16,000? So a bit catch 22.
    • eskbanker
    • By eskbanker 11th Oct 19, 3:42 PM
    • 11,668 Posts
    • 14,468 Thanks
    eskbanker
    As long as they don't go over their allowed amount of total savings while on this benefit, I think you're correct. At least this is what I understand. My family member asked the DWP, they didn't provide a clear answer. They said they didn't think it would be a problem but that they didn't know, which isn't helpful.
    Originally posted by torncurtain
    Just to be clear here, you're moving the goalposts from the question I answered!

    You asked
    Who can/can't apply for a Help to Buy ISA? My family member is in receipt of ESA (old version not new-style, old version being means-tested) but would only be contributing a very small monthly amount. Are they allowed to get a Help to Buy ISA?
    to which the answer is yes, subject to the generic criteria in the earlier post.

    The issue of whether someone can continue to receive all or some of their benefits if holding substantial savings is a different question, and the actual location of those savings is irrelevant....
    • torncurtain
    • By torncurtain 11th Oct 19, 5:28 PM
    • 52 Posts
    • 0 Thanks
    torncurtain
    Rich2808: Agreed re catch 22. From his perspective he thinks that if he's able to return to work, he could contribute to it until the 2030 mark and hopefully find a property. I can't advise him very well, as I'm no expert, obviously. Thanks for your answer.

    eskbanker: I see, I should have been clearer. My thinking was that some people would be restricted from applying (those on specific benefits) or that it could jeopardise their benefits even if there weren't explicit restrictions for applying. Goalposts returned to initial position! You answered me, thanks.
    • efisher
    • By efisher 12th Oct 19, 2:55 PM
    • 1 Posts
    • 0 Thanks
    efisher
    Help to Buy ISA opening with closed Cash ISA
    Hello,

    I have subscribed to a cash ISA in the current tax year and since closed that account, everything was transferred t my current account. Am I still able to open a Help to Buy ISA? As the H2B states that ISAs subscribed to this tax year must be transferred to the H2B, but I am unable to do this with the closed account.

    Thanks!
    • eskbanker
    • By eskbanker 12th Oct 19, 3:13 PM
    • 11,668 Posts
    • 14,468 Thanks
    eskbanker
    I have subscribed to a cash ISA in the current tax year and since closed that account, everything was transferred t my current account. Am I still able to open a Help to Buy ISA? As the H2B states that ISAs subscribed to this tax year must be transferred to the H2B, but I am unable to do this with the closed account.
    Originally posted by efisher
    Assuming you didn't use up your entire 20K annual allowance with the first one, you can still open a second cash ISA (such as a HTB ISA) under the self-transfer rules explained at https://www.gov.uk/guidance/close-void-or-repair-an-isa-if-youre-an-isa-manager#repair-void (section on 'investor error ISA self-transfer') and the first example at https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/695897/worked_examples_of_repairs_and_voiding.pdf
    • tommyh112
    • By tommyh112 13th Oct 19, 5:58 PM
    • 1 Posts
    • 0 Thanks
    tommyh112
    Help to buy or Lifetime Isa?
    I have been doing research lately and cant decide what option would be best for me. My girlfriend and I are looking at buying our first house in 2 years time and are starting to really invest in savings for a deposit. My girlfriend has recently opened a help to buy ISA but as I have savings Im not sure whether to open a help to buy as it is a slower process or a lifetime ISA that I can invest more savings in straight away. Will we be able to get the bonus' from her HTB and my lifetime ISA (if thats what I open) when we purchase the house or does it have to be both HTB's? thank you.
    • eskbanker
    • By eskbanker 13th Oct 19, 6:47 PM
    • 11,668 Posts
    • 14,468 Thanks
    eskbanker
    A couple buying their first property can mix and match, i.e. one uses LISA and the other HTB ISA, both with bonuses, as long as the purchase complies with the requirements of both schemes.
    • masonic
    • By masonic 13th Oct 19, 6:50 PM
    • 12,452 Posts
    • 10,026 Thanks
    masonic
    I have been doing research lately and cant decide what option would be best for me. My girlfriend and I are looking at buying our first house in 2 years time and are starting to really invest in savings for a deposit. My girlfriend has recently opened a help to buy ISA but as I have savings Im not sure whether to open a help to buy as it is a slower process or a lifetime ISA that I can invest more savings in straight away. Will we be able to get the bonus' from her HTB and my lifetime ISA (if thats what I open) when we purchase the house or does it have to be both HTB's? thank you.
    Originally posted by tommyh112
    You can put 4000 per tax year into a LISA, compared with an initial 1000 then 2400 per tax year for a HTB ISA, so you will be able save more with a LISA.

    Thinking of you individually, if you want to use a LISA, that doesn't prohibit you from saving into a HTB ISA as well, but you wouldn't be able to claim the bonus, only benefit from the interest rate.

    The two of you don't have to use the same product for the house purchase, but if one uses a HTB ISA and the other uses a LISA, then you'll need to meet the conditions of both products.
    • Ewan7750
    • By Ewan7750 14th Oct 19, 12:16 PM
    • 1 Posts
    • 0 Thanks
    Ewan7750
    Hi everyone looking for some help/advice.

    I am currently serving in the armed forces and I'm 20,I am married and want to start looking into saving for a mortgage so we have somewhere to live when I leave (not for a few years yet).

    We are both first time buyers and would like to know how and with who to save a deposit.I have read the article regarding help to buy ISAs however I'm still left confused.

    Any advice on help to buy ISAs, lifetime ISAs, help to buy loans from the government (or the armed forces help to buy if anyone is in the know). Realistically we would like to look at buying a house within the next 2-3 years so we can rent it out whilst I'm still serving (in order to get it payed off quicker)

    Thanks in advance
    Ewan
    • masonic
    • By masonic 14th Oct 19, 9:06 PM
    • 12,452 Posts
    • 10,026 Thanks
    masonic
    Realistically we would like to look at buying a house within the next 2-3 years so we can rent it out whilst I'm still serving (in order to get it payed off quicker)
    Originally posted by Ewan7750
    That would disqualify you from both the HTB ISA and Lifetime ISA schemes, so perhaps the armed forces scheme is your best bet, if it allows you to initially purchase as a buy to let.
    • RKobyn
    • By RKobyn 15th Oct 19, 5:12 PM
    • 1 Posts
    • 0 Thanks
    RKobyn
    Property purchase over 250,000
    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?
    Thanks
    • Alexland
    • By Alexland 15th Oct 19, 6:19 PM
    • 5,778 Posts
    • 5,037 Thanks
    Alexland
    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.

    Alex
    • AG_123
    • By AG_123 20th Oct 19, 10:01 PM
    • 1 Posts
    • 0 Thanks
    AG_123
    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.
    • Gawja
    • By Gawja 23rd Oct 19, 8:47 AM
    • 2 Posts
    • 0 Thanks
    Gawja
    Acheiving max. bonus amount
    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?
    • eskbanker
    • By eskbanker 23rd Oct 19, 10:10 AM
    • 11,668 Posts
    • 14,468 Thanks
    eskbanker
    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?
    Originally posted by Gawja
    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....
    • Gawja
    • By Gawja 23rd Oct 19, 10:24 AM
    • 2 Posts
    • 0 Thanks
    Gawja
    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 again
    • Alexland
    • By Alexland 23rd Oct 19, 11:22 AM
    • 5,778 Posts
    • 5,037 Thanks
    Alexland
    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.

    Alex
    • Leigh0810
    • By Leigh0810 29th Oct 19, 12:52 PM
    • 3 Posts
    • 0 Thanks
    Leigh0810
    H2B plus other savings account help
    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!
    • grumiofoundation
    • By grumiofoundation 29th Oct 19, 1:25 PM
    • 162 Posts
    • 143 Thanks
    grumiofoundation
    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!
    Originally posted by Leigh0810
    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/
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,437Posts Today

8,119Users online

Martin's Twitter