New Help to buy ISA query

indierocker85 · 17 July 2018 at 6:41PM

Hi

Myself and my wife are both first time buyers, I already have a help to buy ISA at Halifax. My wife had an Instant cash ISA with Barclays, which she paid into in June. I understood (from MSE) that she can open a Help to buy ISA, providing she transfers the existing isa.

The existing instant cash ISA had £238 in it. We have successfully opened the market leading Help to Buy ISA (with Barclays) and have initiated the full transfer of £238, from the instant cash ISA, to the Help to Buy ISA.

What we are now wondering is, does this £238 count as the £1200 she is allowed to deposit in Month 1? In which case, we are permitted to deposit a further £962 within July. Or, is the transfer not factored into the permitted £1200, in which case we can still deposit that.......?

If anybody knows, and can confirm, we would be very grateful

masonic · 17 July 2018 at 7:42PM

Check your T&Cs. Some providers have placed restrictions on how the payments may be made up. But the transfer will definitely be deducted from the initial £1200 allowance. You may be permitted to deposit a further £962 within the same month as the transfer if the T&Cs permit it. Otherwise you could be limited to just £200 or £0.

Rich2808 · 17 July 2018 at 8:44PM

Barclays allow you to make multiple payments per month up to the £1200 limit (month 1) and £200 thereafter. Halifax for example do not.

So your wife could transfer in her £238 in from her existing isa and then add another £962 to top it up to the £1200 maximum in month 1. Just make sure both sums go in in the same calendar month

https://www.barclays.co.uk/savings/isas/help-to-buy-isa/

indierocker85 · 18 July 2018 at 1:59PM

Thanks for your help, I think we have the answer we were seeking. Much appreciated

Wildsound · 19 July 2018 at 2:08PM

You may also want to consider a Lifetime ISA if you are both under 40. It is essentially a much better version of the HTB ISA if you plan on buying a house in 1+ years time. There are guides on this website, I recommend you take a look.

If it is something you think you should be opening, then luckily you are able to have both a HTB ISA and a Lifetime ISA at the same time (which a lot of people don't realise as the product is clouded in confusion for the regular joe)

Rich2808 · 19 July 2018 at 11:35PM

Wildsound wrote: »

You may also want to consider a Lifetime ISA if you are both under 40. It is essentially a much better version of the HTB ISA if you plan on buying a house in 1+ years time. There are guides on this website, I recommend you take a look.

If it is something you think you should be opening, then luckily you are able to have both a HTB ISA and a Lifetime ISA at the same time (which a lot of people don't realise as the product is clouded in confusion for the regular joe)

Agreed the lifetime ISA makes more sense.

The HTB ISA is only a better alternative if you are buying in the next few months when you open the account as you can qualify for a bonus more quickly (within 3 months rather than at the end of the tax year) or you are a first time buyer over 40 and can't open a lifetime ISA. And the Lifetime ISA has a £450k property value limit outside London - for most people buying in the South east outside the capital the HTB ISA is close to worthless.

New Help to buy ISA query

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