Help to buy ISA questions
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Gordon_the_Moron
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Firstly I've heard H2B ISAs can no longer be opened after next year as they're being replaced by Lisa. Will existing H2B accounts then or later have to be closed?
Next question, I had a Nationwide cash ISA and Nationwide H2B running side by side as they allow splits. I transferred the H2B into the Skipton Lisa at the back end of last year. Is there anything now stopping me opening another H2B with Nationwide? I fully understand I can only get the bonus on one, for which I intend to use the Lisa, I just want to use the Nationwide account as a regular saver as it beats their normal cash ISA on rate.
Next question, I had a Nationwide cash ISA and Nationwide H2B running side by side as they allow splits. I transferred the H2B into the Skipton Lisa at the back end of last year. Is there anything now stopping me opening another H2B with Nationwide? I fully understand I can only get the bonus on one, for which I intend to use the Lisa, I just want to use the Nationwide account as a regular saver as it beats their normal cash ISA on rate.
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As with many HTB-related questions, this one is covered in the FAQ at https://www.helptobuy.gov.uk/help-to-buy-isa/faq/:Gordon_the_Moron wrote: »Firstly I've heard H2B ISAs can no longer be opened after next year as they're being replaced by Lisa. Will existing H2B accounts then or later have to be closed?
This isn't LISA-related as such, as the rule was in place from day one of the HTB ISA scheme, well before the Lifetime ISA was created....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 – but if you opened your Help to Buy: ISA before then you can keep saving into your account until 30 November 2029 when accounts will close to additional contributions.
You must claim your bonus by 1 December 2030.
No, there's nothing stopping you from opening an HTB in these circumstances....Gordon_the_Moron wrote: »Next question, I had a Nationwide cash ISA and Nationwide H2B running side by side as they allow splits. I transferred the H2B into the Skipton Lisa at the back end of last year. Is there anything now stopping me opening another H2B with Nationwide? I fully understand I can only get the bonus on one, for which I intend to use the Lisa, I just want to use the Nationwide account as a regular saver as it beats their normal cash ISA on rate.0 -
In practice the only people it makes sense for to open a help to buy ISA now are first time buyers aged over 40 - as they can't open a lifetime ISA - and possibly those likely to buy in the next few months.
For those under 40 the life time ISA is superior - higher property value limits outside London and a more generous bonus sooner. And more flexible in terms of how you can use it during the actual purchase process.
Yes you may get a higher cash interest rate but it's marginal0 -
I've noticed that solicitors charge to (I assume) task the government with supplying the bonus when the H2B ISA is closed. As we're not eligible for the bonus (>£250K & outside of London), is there any point in keeping the H2B ISA open and risk an extra unwanted charge from the solicitor or should I just close it sooner and transfer the balance to where the rest of my deposit for my house is currently stashed?
Please no talk about LISA in replies as we are both over 40 so it's not an option.0 -
As per the FAQ linked above, conveyancers can charge up to £60 (£50 plus VAT) to process your bonus application.I've noticed that solicitors charge to (I assume) task the government with supplying the bonus when the H2B ISA is closed. As we're not eligible for the bonus (>£250K & outside of London), is there any point in keeping the H2B ISA open and risk an extra unwanted charge from the solicitor or should I just close it sooner and transfer the balance to where the rest of my deposit for my house is currently stashed?
Please no talk about LISA in replies as we are both over 40 so it's not an option.
If you're not going to make a bonus application then you don't need to involve your solicitor in the HTB ISA at all and can just close it at your convenience.0
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