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  • 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 4
    • Rich2808
    • By Rich2808 2nd Dec 15, 10:10 AM
    • 945 Posts
    • 736 Thanks
    Rich2808
    I have a question with regards to the maximum house price...

    Currently this is £450,000 in London, where I would be looking to buy. However, clearly it takes the best part of 5 years to get the £12,000 into the ISA (and get the full bonus). By this time, with house prices rising (especially in London), I will not be able to buy a huge amount for the £450,000 maximum...

    My question is: will the maximum house price increase over time, or will it always be fixed at £450,000 in London?

    I have searched for an answer to this, but can't find one anywhere! (please correct me if I'm being stupid!)
    Originally posted by sibbers89
    The government can change the rules or drop the scheme at any time. It's £450k now - that may change or not. It's a very odd situation as prices in parts of the south east or Cambridge are actually higher than in some areas of London.

    To be honest if you can afford to buy a £450k property as a first time buyer then this extra £3k should make little or no difference to you. And don't assume house prices will always go up and up every year - they may not.
    • MattGill
    • By MattGill 2nd Dec 15, 10:16 AM
    • 2 Posts
    • 0 Thanks
    MattGill
    The Halifax ISA says it will only pay out interest accrued annually, while Virgin will pay out monthly. If I opened the Halifax account (for the higher interest rate), but another account with a better interest rate appeared on the market within 12 months, would I get interest up until the date that I move accounts? The same question applies if Halifax reduced the variable interest rate to below the best in the market?
    • Davey2C
    • By Davey2C 2nd Dec 15, 10:30 AM
    • 4 Posts
    • 1 Thanks
    Davey2C
    The Halifax ISA says it will only pay out interest accrued annually, while Virgin will pay out monthly. If I opened the Halifax account (for the higher interest rate), but another account with a better interest rate appeared on the market within 12 months, would I get interest up until the date that I move accounts? The same question applies if Halifax reduced the variable interest rate to below the best in the market?
    Originally posted by MattGill
    As I understand they should calculate the interest daily and pay it as they state (Halifax annually or Virgin monthly), they should also pay any outstanding interest upon closing the account; though if you want to be 100% sure, check the terms and conditions on the account.
    • emilymachin
    • By emilymachin 2nd Dec 15, 10:59 AM
    • 1 Posts
    • 0 Thanks
    emilymachin
    I have a cash ISA that was set up a good few years ago, I have added money to it continuously throughout this tax year.

    If I set up a help to buy ISA, can I still add money to the cash ISA or will I need to stop using it/close it down?

    Thanks.
    • Davey2C
    • By Davey2C 2nd Dec 15, 11:22 AM
    • 4 Posts
    • 1 Thanks
    Davey2C
    Hi
    I think I know the answer but want to check! I have just shy of £15000 in a cash isa only opened a few month ago (so in this tax year), it's money for a deposit. Am I best to close this & then open a help to buy ISA with Halifax and keep the remainder in an instant access savings (which I already have with a 1.50% interest rate) OR open a split Isa with Nationwide? Thank you!
    Originally posted by angelofinnocence33
    Hello, don't close the account, transfer the money out of it into a HTB ISA (or HTB ISA+Cash ISA in single ISA wrapper, sounds a little confusing ) so it doesn't lose it's Tax Free status. You would need to transfer all of the money out of the other Cash ISA so it will close, to ensure that you are within the rules of only opening/actively subscribing to one Cash ISA (Cash ISA within one wrapper) per tax year

    I am in a similar situation to you, I think I will open a Nationwide HTB Cash ISA + Cash ISA (under a single Cash ISA wrapper). Then next Tax year, transfer the HTB Cash ISA into a Halifax one paying 4% (if it is still a higher rate) and then transfer the Nationwide Cash ISA to another Cash ISA which pays a higher rate of interest ie. Coventry Building Society 2.4% AER, and then maximise any other savings over the £200 a month into accounts paying a higher rate (as suggested by other frugal posters)
    I can't link as I'm a newbie, but look at MSE "Best Regular Savings Accounts", up to 6%.

    Also if you're transferring previous years Cash ISA's into a new Cash ISA, it isn't classed as opening a new account as it is still under a previous years wrapper. So this should be allowable for people with HTB Cash ISA's; community please correct me if I'm wrong, or give me a clap if I'm right.
    I can't link as I'm a newbie, but look at MSE "cash-isa-transfers"

    Here is avery good Guide from MSE on how to start saving money and building for the future
    I can't link as I'm a newbie, but look at MSE "How to Start Saving", get max interest from every penny you've got.

    Now it's time to put these savings to work and grab a
    • aoc
    • By aoc 2nd Dec 15, 11:26 AM
    • 4 Posts
    • 0 Thanks
    aoc
    Using Cash ISA to fund HTB ISA
    I am planning on geting a split ISA and will transfer across money from a previous year's Cash ISA. If I then struggle to save the £200 per month to fill the HTB ISA, can I use the other side of the split ISA to fund the HTB ISA to ensure I am putting the max in each month?

    Thanks.
    • floppity
    • By floppity 2nd Dec 15, 11:27 AM
    • 18 Posts
    • 2 Thanks
    floppity
    What happens if you end up buying a property for more than £250k (outside London) ? Is this limit likely to be increased to keep pace with rising property prices?
    • colsten
    • By colsten 2nd Dec 15, 11:28 AM
    • 11,755 Posts
    • 11,110 Thanks
    colsten
    What happens if you end up buying a property for more than £250k (outside London) ? Is this limit likely to be increased to keep pace with rising property prices?
    Originally posted by floppity
    You won't be entitled to the bonus.

    Rules are here: http://www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work
    • colsten
    • By colsten 2nd Dec 15, 11:31 AM
    • 11,755 Posts
    • 11,110 Thanks
    colsten
    I am planning on geting a split ISA and will transfer across money from a previous year's Cash ISA. If I then struggle to save the £200 per month to fill the HTB ISA, can I use the other side of the split ISA to fund the HTB ISA to ensure I am putting the max in each month?
    Originally posted by aoc
    You might be. You need to ask your provider. They are very likely to have special rules and processes for transferring money between ISAs. Also, some might require the HTB deposit to be made by SO. You need to read your T&Cs.
    • Davey2C
    • By Davey2C 2nd Dec 15, 11:33 AM
    • 4 Posts
    • 1 Thanks
    Davey2C
    I have a cash ISA that was set up a good few years ago, I have added money to it continuously throughout this tax year.

    If I set up a help to buy ISA, can I still add money to the cash ISA or will I need to stop using it/close it down?

    Thanks.
    Originally posted by emilymachin
    Your previous years contributions can stay put or you can transfer them into a higher paying Cash ISA (or other higher interest non ISA account.)

    If you're transferring previous years Cash ISA's into a new Cash ISA, it isn't classed as opening a new account as it is still under a previous years wrapper. So this should be allowable for people with HTB Cash ISA's; community please correct me if I'm wrong, or give me a clap if I'm right.
    I can't link as I'm a newbie, but look at MSE "cash-isa-transfers"
    Originally posted by Davey2C
    But you will have to transfer your current years subscriptions from that Cash ISA if you want to open a HTB ISA.

    Hello, don't close the account, transfer the money out of it into a HTB ISA (or HTB ISA+Cash ISA in single ISA wrapper, sounds a little confusing ) so it doesn't lose it's Tax Free status. You would need to transfer all of the money out of the other Cash ISA so it will close, to ensure that you are within the rules of only opening/actively subscribing to one Cash ISA (Cash ISA within one wrapper) per tax year
    Originally posted by Davey2C
    • theonlytrueblonde
    • By theonlytrueblonde 2nd Dec 15, 11:45 AM
    • 7 Posts
    • 0 Thanks
    theonlytrueblonde
    Subscribed to an ISA but not paid in
    Hi All

    I can't seem to find the answer to this anywhere so hoping you can help. I moved house earlier in the year and to change my address on my old ISA I had to re-subscribe in this tax year. However, I have not paid anything into this ISA. As I have not paid any money, does that mean I should be ok to open a HTB ISA?

    Thanks!
    • jimjames
    • By jimjames 2nd Dec 15, 12:08 PM
    • 13,310 Posts
    • 12,363 Thanks
    jimjames
    Hi All

    I can't seem to find the answer to this anywhere so hoping you can help. I moved house earlier in the year and to change my address on my old ISA I had to re-subscribe in this tax year. However, I have not paid anything into this ISA. As I have not paid any money, does that mean I should be ok to open a HTB ISA?

    Thanks!
    Originally posted by theonlytrueblonde
    Yes it does. It's only paying money in that counts.


    You may also find it's worth putting your old ISA money into non ISA accounts to get a better interest rate.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • jimjames
    • By jimjames 2nd Dec 15, 12:09 PM
    • 13,310 Posts
    • 12,363 Thanks
    jimjames
    I am planning on geting a split ISA and will transfer across money from a previous year's Cash ISA. If I then struggle to save the £200 per month to fill the HTB ISA, can I use the other side of the split ISA to fund the HTB ISA to ensure I am putting the max in each month?
    Thanks.
    Originally posted by aoc
    Depending on the amounts you may find it better to draw all the money out of the old cash ISA and keep it in a high interest current account & use it to fund the HTB ISA if you can't add £200 every month. A split ISA is still pointless for most people.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • Mickyjo
    • By Mickyjo 2nd Dec 15, 12:21 PM
    • 2 Posts
    • 0 Thanks
    Mickyjo
    Hi

    My wife and I have Nationwide Save to Buy account with a few thousand in it. Should I close this down and open up two Help to Buy ISAs?

    Thanks
    • jimjames
    • By jimjames 2nd Dec 15, 12:24 PM
    • 13,310 Posts
    • 12,363 Thanks
    jimjames
    Hi

    My wife and I have Nationwide Save to Buy account with a few thousand in it. Should I close this down and open up two Help to Buy ISAs?

    Thanks
    Originally posted by Mickyjo
    Can you open both? HTB is definitely worth it for the free money
    Remember the saying: if it looks too good to be true it almost certainly is.
    • je55ica
    • By je55ica 2nd Dec 15, 12:24 PM
    • 1 Posts
    • 0 Thanks
    je55ica
    Can Help to buy ISA be used with right to buy?
    Seriously considering purchasing the house I live in though the right to buy scheme within the next couple of years after I have returned to work from maternity leave.

    Could a help to buy ISA be used with a right to buy mortgage to get the extra 25% towards the deposit ?

    I would be a first time buyer. I'm currently saving £50 each week to help build up my own deposit.
    • Mickyjo
    • By Mickyjo 2nd Dec 15, 12:27 PM
    • 2 Posts
    • 0 Thanks
    Mickyjo
    Can you open both? HTB is definitely worth it for the free money
    Originally posted by jimjames
    I would need to close down the existing account remove the money for the HTB ISA and open another Save to Buy account.
    • curiosity101
    • By curiosity101 2nd Dec 15, 12:41 PM
    • 113 Posts
    • 44 Thanks
    curiosity101
    My partner is currently a home owner. We expect to buy a house together in the next couple of years. I understand that I can open one of these accounts but what are the actual implications when we go to buy?

    Can both of us be on the title deeds and both of us on the mortgage?
    • kittywales
    • By kittywales 2nd Dec 15, 12:46 PM
    • 4 Posts
    • 2 Thanks
    kittywales
    HELP -- Can I cancel a HTB isa and open a new one in the 14 day cooling off period?
    I opened a HTB ISA yesterday with the Halifax and deposited £100 believing I could top it up to £1000 in the first 21 days. They blocked me from depositing anymore and said only one deposit was allowed.

    The govt website F&Q's state that
    Q. 'Can I make multiple deposits into my Help to Buy: ISA during a single month?
    A. Yes. As long as your providerís terms and conditions allow it, you can make multiple deposits of up to £1,200 in your first month, and up to £200 in following months.
    www help to buy gov uk

    I had checked the Halifax T&C's beforehand and they state
    'once your ISA is opened you have 21 days to pay in an initial deposit of up to £1,000'

    Had the Halifax page stated 'only one transaction allowed' I wouldn't have done it, but I assumed that It could be done in multiples.

    I have asked the Halifax if I can add more money or cancel in the 14 day cooling off period and open a new one elsewhere, but am very confused as no-one has answered fully yet, just telling me to ring different numbers which have lengthy queues. I haven't been able to find details on MSE F&Q's so would be most grateful if anyone can help please?

    Thanks
    • sam348s
    • By sam348s 2nd Dec 15, 12:46 PM
    • 3 Posts
    • 1 Thanks
    sam348s
    debts
    Some advise please. I am currently paying off debts, approx. 800£ per month to clear asap so we can buy a house in July when our current living situation ends. However, as my focus has been debts, I have no savings for deposit. For 5% on a house in our area, we are looking at needing 6k deposit. Would it be better to pay less on debts (All credits cards currently 0% interest for at least a year) and then join this scheme so we have the deposit and move out with a few grand left as debts?
    Not sure if you can get a mortgage with approx. 5k on credit card debts still....do you need to be debt free? I have all on 0% and the term will be longer then it will take to clear, we have the wages to cover payments on the cards after we buy and all bills etc... its literally can you get a mortgage with debts, and is it better to save for deposit then pay all spare money on debts, given our deadline of July to move out and costs of rental very high in our area and not want we want to do.
    Thanks for any advise
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