Help to Buy ISA guide

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  • jlaw4
    jlaw4 Posts: 122 Forumite
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    edited 15 March 2017 at 11:09PM
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    Hi,

    I am currently looking for a property and i was just wondering if anyone can share any experience of using the HTB Isa at mortgage stage?

    I may potentially have more in it than the 10% deposit required for example if the property price is £140000 and its £14K deposit, but i have £15500 already in the ISAs (me and OH have one each) with bonus excluding interest. I have searched everywhere but can't seem to find any answers!
    would i just borrow less on the application as the bonus money has to be paid off the mortgage at completion?

    Thanks :)
  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
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    jlaw4 wrote: »
    would i just borrow less on the application as the bonus money has to be paid off the mortgage at completion?
    All the bonus money you claim has to be used towards purchasing the property (i.e., the seller of the property will get it). Consequently you will need less of a mortgage.
  • robinbanks123
    robinbanks123 Posts: 68 Forumite
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    edited 23 March 2017 at 8:49PM
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    Hi all! Hoping someone can pit my mind at ease! I opened a help to buy ISA last June and put in the first months allowance of £1200. A month later an emergency cropped up and I needed the money back and so took it out. I got a bonus in Feb and opened a new HTB ISA with another provider and put another £1200 in followed by £200 in March! Have I done something daft here? I completely forgot the 1st ISA was opened until I got a statement through the post today showing I accrued £6ish in interest for the time it was in the wrapper. Should i have closed the 1st one before opening the 2nd one? If i transfer the 2nd into the 1st will that solve things!

    Any advice welcome just to put my mind at rest as im panicking a bit!
  • masonic
    masonic Posts: 23,277 Forumite
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    robinbanks123 wrote: »
    Hi all! Hoping someone can pit my mind at ease! I opened a help to buy ISA last June and put in the first months allowance of £1200. A month later an emergency cropped up and I needed the money back and so took it out. I got a. Onus in Feb and opened a new HTB ISA with another provider and put another £1200 in followed by £200 in March! Have I done something daft here? I completley forgot the 1st ISA was opened until I got a statement through the post today showing I accrued £6ish in interest for the time it was in the wrapper. Should i have closed the 1st one before opening the 2nd one? If i transfer the 2nd into the 1st will that solve things!

    Any advice welcome just to put my mind at rest as im panicking a bit!
    It would probably make most sense to transfer the 1st one into the 2nd one, but the effect of the specific rules of the HTB ISA is not clear to me. The 2nd one may still be valid as it could be interpreted as a self-transfer of a cash ISA (you withdrew all of the money you paid into the 1st ISA before putting the money into the 2nd), but you are only allowed to hold one HTB ISA.

    I think you are going to find it hard to get a definitive answer. Phoning HMRC for advice might be your best bet.
  • cirwin91
    cirwin91 Posts: 2 Newbie
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    Hi
    Looking for some advice on whether this is allowed before proceeding...

    My partner does not have the funds to save into the help to buy isa scheme but would like to.
    Is it allowed to transfer money into an account they own (A standard current account), to which they can they transfer into a help to buy isa account which they open in their name?
    The part I'm not sure about is the fact I already have a help to buy isa but I would in a sense be paying into both accounts so am curious as to whether or not they then would be able to claim back a bonus ok? We both would be purchasing our first house and meet the criteria ok.
    Any help appreciated!
  • badger09
    badger09 Posts: 11,210 Forumite
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    cirwin91 wrote: »
    Hi
    Looking for some advice on whether this is allowed before proceeding...

    My partner does not have the funds to save into the help to buy isa scheme but would like to.
    Is it allowed to transfer money into an account they own (A standard current account), to which they can they transfer into a help to buy isa account which they open in their name?
    The part I'm not sure about is the fact I already have a help to buy isa but I would in a sense be paying into both accounts so am curious as to whether or not they then would be able to claim back a bonus ok? We both would be purchasing our first house and meet the criteria ok.
    Any help appreciated!

    Yes, you can do that. With the proviso that any money paid into your partner's account (ISA or non ISA) becomes legally theirs.
  • Hippognome
    Hippognome Posts: 7 Forumite
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    edited 31 March 2017 at 5:21PM
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    Hi, sorry if this has been asked and answered already: I know that if I take an amount of money out of a HTB ISA for any reason other than to help pay for a house that I would lose the goverment bonus (I assume just for the amount that's taken out and not for what's left in the HTB -- is that correct?) but would I regain that bonus if I pay the same amount back in at a later date?

    For example, say I have £1600 in the HTB and I take out £100 and lose the potential £400 bonus. If I paid back in £100 or more in the future, would I get the bonus back?
  • masonic
    masonic Posts: 23,277 Forumite
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    Hippognome wrote: »
    Hi, sorry if this has been asked and answered already: I know that if I take an amount of money out of a HTB ISA for any reason other than to help pay for a house that I would lose the goverment bonus (I assume just for the amount that's taken out and not for what's left in the HTB -- is that correct?) but would I regain that bonus if I pay the same amount back in at a later date?

    For example, say I have £1600 in the HTB and I take out £100 and lose the potential £400 bonus. If I paid back in £100 or more in the future, would I get the bonus back?
    You will get the bonus based on the balance when you close the account to use the money for a house purchase. Exactly how you built up that closing balance is irrelevant.
  • brynhh
    brynhh Posts: 45 Forumite
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    Hi all.

    I've got a HTB ISA at the moment and pay the 200 in on the 21st of each month as that's pretty much the date I opened it. But the monthly payments, are they every calendar month or every month after opening? If the former then I presume I can pay next months payment in tomorrow (1st) rather than 21st and it'll have that extra in before the cut off date for the HTB to LISA transfer calculation.

    Thanks.
  • masonic
    masonic Posts: 23,277 Forumite
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    jimmyhart wrote: »
    I've got a HTB ISA at the moment and pay the 200 in on the 21st of each month as that's pretty much the date I opened it. But the monthly payments, are they every calendar month or every month after opening? If the former then I presume I can pay next months payment in tomorrow (1st) rather than 21st and it'll have that extra in before the cut off date for the HTB to LISA transfer calculation.
    Yes, you can bring your payment forward to the beginning of the calendar month.
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