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  • FIRST POST
    • Former MSE Sam M
    • By Former MSE Sam M 1st Dec 15, 2:23 PM
    • 238Posts
    • 159Thanks
    Former MSE Sam M
    Help to Buy ISA guide
    • #1
    • 1st Dec 15, 2:23 PM
    Help to Buy ISA guide 1st Dec 15 at 2:23 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 88
    • Alexland
    • By Alexland 23rd Apr 19, 7:48 PM
    • 5,113 Posts
    • 4,437 Thanks
    Alexland
    The £200 monthly cap is a rule of the government HTB ISA scheme as it is intended for people who gradually save up to buy a property. You might want to consider the Lifetime ISA where you can add up to £4k per tax year for a 25% government bonus.


    Alex
    • Mjevans1991
    • By Mjevans1991 25th Apr 19, 9:10 PM
    • 1 Posts
    • 0 Thanks
    Mjevans1991
    I opened a Help to Buy ISA with Lloydís, put 1k in, had good intention of saving but need the money for something else. Closed the account down. Now Iím actively saving for a house and have opened up a new one with HSBC. Am I still eligible for the bonus? The guide indicates that I wouldnít be as Iíve take out the same product with two different suppliers even though they were not used concurrently. Thanks.
    • masonic
    • By masonic 26th Apr 19, 5:22 AM
    • 11,783 Posts
    • 9,409 Thanks
    masonic
    I opened a Help to Buy ISA with Lloydís, put 1k in, had good intention of saving but need the money for something else. Closed the account down. Now Iím actively saving for a house and have opened up a new one with HSBC. Am I still eligible for the bonus? The guide indicates that I wouldnít be as Iíve take out the same product with two different suppliers even though they were not used concurrently. Thanks.
    Originally posted by Mjevans1991
    Any HTB iSA you previously held and closed would have no impact on your ability to claim the bonus on your new HTB ISA.
    • Morganmarron
    • By Morganmarron 28th Apr 19, 9:08 AM
    • 1 Posts
    • 0 Thanks
    Morganmarron
    Hello there,
    Got a quick question - does anyone know of a help to buy ISA where you have to give advance notice for a withdrawal? Thanks in advance!
    • Alexland
    • By Alexland 28th Apr 19, 3:55 PM
    • 5,113 Posts
    • 4,437 Thanks
    Alexland
    No, as the HTB ISA is a type of cash ISA the money would need to remain easy access for withdrawals.
    • whiggy2016
    • By whiggy2016 13th May 19, 4:30 PM
    • 14 Posts
    • 1 Thanks
    whiggy2016
    I did exactly that last year. Who told you otherwise?
    Originally posted by dekkard

    Hey, just to clarify, was there a limit on the sum of money you were allowed transfer from one Help to Buy ISA (HTB) to another? So far most of the information I've been given says there is a limit of up to £1,600 on it

    The scheme rules for it say this:


    "6.Operating Help to Buy: ISAs


    6.1 Maximum First Month Amount and Monthly Allowance(A)
    A Help to Buy: ISA Holder shall be entitled to pay in aggregate up to the Maximum First Month Amount into their Help to Buy: ISA in the first month in which they pay any amounts into their Help to Buy: ISA.



    For the avoidance of doubt,a Help to Buy: ISA Holder shall not be entitled to pay a further Maximum First Month Amount into a Help to Buy: ISAf ollowing a Help to Buy: ISA Transfer."


    Source: https://www.helptobuy.gov.uk/documents/2015/12/scheme-rules.pdf/


    Can you clarify what happened when you transferred yours?
    • whiggy2016
    • By whiggy2016 13th May 19, 4:32 PM
    • 14 Posts
    • 1 Thanks
    whiggy2016
    Whoever told you that needs additional training as it was wrong information.

    Alex.
    Originally posted by Alexland

    Hey, just to clarify, was there a limit on the sum of money you were allowed transfer from one Help to Buy ISA (HTB) to another? So far most of the information I've been given says there is a limit of up to £1,600 on it

    The scheme rules for it say this:


    "6.Operating Help to Buy: ISAs


    6.1 Maximum First Month Amount and Monthly Allowance(A)
    A Help to Buy: ISA Holder shall be entitled to pay in aggregate up to the Maximum First Month Amount into their Help to Buy: ISA in the first month in which they pay any amounts into their Help to Buy: ISA.



    For the avoidance of doubt,a Help to Buy: ISA Holder shall not be entitled to pay a further Maximum First Month Amount into a Help to Buy: ISAf ollowing a Help to Buy: ISA Transfer."


    Source: https://www.helptobuy.gov.uk/documents/2015/12/scheme-rules.pdf/


    Can you clarify what happened when you transferred yours?
    • whiggy2016
    • By whiggy2016 13th May 19, 4:34 PM
    • 14 Posts
    • 1 Thanks
    whiggy2016
    Thanks for the input. Ill try again then. Was told this by a member of staff at a Barclays branch
    Originally posted by Ajhurst

    Hey,


    Any updates on what happened when you transferred? Was there a limit?
    • Alexland
    • By Alexland 13th May 19, 8:36 PM
    • 5,113 Posts
    • 4,437 Thanks
    Alexland
    Hey, just to clarify, was there a limit on the sum of money you were allowed transfer from one Help to Buy ISA (HTB) to another? So far most of the information I've been given says there is a limit of up to £1,600 on it
    Originally posted by whiggy2016
    Provided you follow the new provider's ISA transfer process there is no limit to the account value that you can request to transfer between providers. The transferred money is not considered a new contribution or you paying into the account.

    Alex
    • The Mighty Gusset
    • By The Mighty Gusset 15th May 19, 7:28 AM
    • 148 Posts
    • 202 Thanks
    The Mighty Gusset
    Apologies if this has been asked before, it's a long thread to dig back through.
    I'm 56 yrs old and due to a relationship split I'm currently looking at moving into a shared ownership house and buying a 50% share in about 3 years time.
    If I open a HTB ISA can I use it for that ?
    Also, the last time I had a mortgage was 30 years ago. Would anyone be able to check back that far and find out that I'm not actually a first time buyer ?
    Gus.
    • SibbyArkellGlover
    • By SibbyArkellGlover 15th May 19, 9:14 AM
    • 1 Posts
    • 0 Thanks
    SibbyArkellGlover
    LISA and Help to Buy?
    Hi, I'm married and was wondering if it is advisable for one of us to get a LISA and the other to get a Help to Buy ISA? My thought process is that the LISA would enable us to access the higher bonus amount and the Help to Buy would protect us from paying a penalty if we decide not to buy a house with the money. The only disadvantage I can think of is that by one of us using the Help to Buy and the other using the LISA, we would be restricted to the maximum house purchase price of £250k???

    Any thoughts / advice on this would be most appreciated!
    • eskbanker
    • By eskbanker 16th May 19, 1:41 PM
    • 10,446 Posts
    • 12,719 Thanks
    eskbanker
    Apologies if this has been asked before, it's a long thread to dig back through.
    I'm 56 yrs old and due to a relationship split I'm currently looking at moving into a shared ownership house and buying a 50% share in about 3 years time.
    If I open a HTB ISA can I use it for that ?
    Also, the last time I had a mortgage was 30 years ago. Would anyone be able to check back that far and find out that I'm not actually a first time buyer ?
    Originally posted by The Mighty Gusset
    If you owned a property before then you're no longer a first time buyer and never will be again, so you're ineligible even to open a HTB ISA, end of.

    If you're hoping for support, endorsement or assistance with making fraudulently dishonest declarations then this isn't the place for that sort of thing....
    • lidlfan
    • By lidlfan 18th May 19, 2:55 PM
    • 30 Posts
    • 3 Thanks
    lidlfan
    Hi

    I was looking for advice on a Help to Buy ISA. This is the one where you get 25% extra towards a deposit right? The one that stops taking new accounts later in the year?

    Anyway, I am in my early 40s and a council tenant. I have a few thousand saved and was considering taking this option. However I am not 100% sure I will given I already have a secure tenancy. Were I to change my mind, would I just be able to take the money back with no interest but no penalty? It's sitting accruing nothing just now in a current account anyway.

    Also, if I open one prior to November or whenever the scheme stops, can I keep adding monthly amounts top it up for a while and still get the 25%? I could already put in 4 or 5 thousand but might want to add to that.
    • bowlhead99
    • By bowlhead99 18th May 19, 3:42 PM
    • 8,864 Posts
    • 16,234 Thanks
    bowlhead99
    Anyway, I am in my early 40s and a council tenant. I have a few thousand saved and was considering taking this option. However I am not 100% sure I will given I already have a secure tenancy. Were I to change my mind, would I just be able to take the money back with no interest but no penalty?
    Originally posted by lidlfan
    Yes, you can close the account whenever you like, without a penalty. You will keep the interest, but you won't be able to claim the bonus 25% on the total if you withdraw the money - you only get the bonus if you buy a qualifying property.

    It's sitting accruing nothing just now in a current account anyway.
    Whether you choose to go for a help to buy account or not, it makes sense to move it into an account that pays interest. For example if you have £5000 in an account paying 1%, instead of 0%, that's £50 every year for free.

    Many banks pay interest on current accounts - e.g. Nationwide's Flexdirect current account pays 5% on the first £2500 for the first year you have the account, which is over £100 of interest. You could spread the money over multiple interest-paying accounts to get the best rates.

    Also, if I open one prior to November or whenever the scheme stops, can I keep adding monthly amounts top it up for a while and still get the 25%? I could already put in 4 or 5 thousand but might want to add to that.
    Yes, although you can't open a new account after November 2019, you can keep paying into an existing one until the scheme stops in November 2029, and will still be able to buy a property during 2030.

    However, you will not be able to put 4 or 5 thousand in straight away. The maximum contribution is £1000 at account opening and £200 each month thereafter. So it would take you a couple of years to gradually move all your existing savings over into the account.

    Nothing to stop you doing that, and start off with £1200 in the HTB account with the other £4000 in a different good interest-paying account, gradually dripping the money over into the HTB account which also pays interest and has a nice bonus at the end.
    • lidlfan
    • By lidlfan 19th May 19, 3:00 PM
    • 30 Posts
    • 3 Thanks
    lidlfan
    Thanks a lot, Bowlhead.
    • Alexland
    • By Alexland 21st May 19, 9:20 AM
    • 5,113 Posts
    • 4,437 Thanks
    Alexland
    Hi, I'm married and was wondering if it is advisable for one of us to get a LISA and the other to get a Help to Buy ISA? My thought process is that the LISA would enable us to access the higher bonus amount and the Help to Buy would protect us from paying a penalty if we decide not to buy a house with the money. The only disadvantage I can think of is that by one of us using the Help to Buy and the other using the LISA, we would be restricted to the maximum house purchase price of £250k???
    Originally posted by SibbyArkellGlover
    Sorry for the delay replying - yes that's correct if you each use a different product your purchase will be constrained by the rules of both schemes. Suggest you have a good hard think about if you are going to commit into purchasing a property in the next few years and the likely value then pick an appropriate product for your needs.

    Alex
    • moonstr
    • By moonstr 25th May 19, 12:51 AM
    • 5 Posts
    • 0 Thanks
    moonstr
    Hi, not sure if this has been asked before but what happens to the money in the account when it gets closed?

    I know the bonus gets paid to the conveyancer once approved but where does the other money go?

    Thanks!
    • Alexland
    • By Alexland 25th May 19, 6:52 AM
    • 5,113 Posts
    • 4,437 Thanks
    Alexland
    When you close the HTB ISA the money goes back to you and they provide a closure statement that the solicitor uses to claim the bonus for a qualifying property purchase.
    • Makemevenricher
    • By Makemevenricher 3rd Jun 19, 7:20 PM
    • 12 Posts
    • 2 Thanks
    Makemevenricher
    30 Nov 2019
    Hello all

    Quick question. For the help to buy ISA the last date is the 30 Nov 2019 to open. It says for 16 and above and for those that have not owned a property.

    My son is 16 on the 30 Nov 2019 - does that mean on that date he can still open one or does it run out at 29th November 2019 at midnight?

    Thanks
    • masonic
    • By masonic 3rd Jun 19, 7:51 PM
    • 11,783 Posts
    • 9,409 Thanks
    masonic
    Hello all

    Quick question. For the help to buy ISA the last date is the 30 Nov 2019 to open. It says for 16 and above and for those that have not owned a property.

    My son is 16 on the 30 Nov 2019 - does that mean on that date he can still open one or does it run out at 29th November 2019 at midnight?

    Thanks
    Originally posted by Makemevenricher
    "How long will Help to Buy: ISAs be available for?
    You’ll be able to open a Help to Buy: ISA until 30 November 2019. After that date they won’t be available to new savers anymore..."

    https://www.helptobuy.gov.uk/help-to-buy-isa/faq/
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