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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 97
    • eskbanker
    • By eskbanker 7th Nov 19, 1:32 PM
    • 11,916 Posts
    • 14,726 Thanks
    eskbanker
    Please could someone confirm what the rules are regarding a first tim buyer and a current home owner buying a house with the help to buy equity loan after the 2021 deadline
    Originally posted by Jack_Murphy95
    It's not really a question for this thread, which is all about the Help To Buy ISA.

    The Help To Buy Equity Loan is a completely different scheme, so read up on it at https://www.helptobuy.gov.uk/equity-loan/further-guidance/ and maybe try the house buying board if you have any follow-up questions....
    • Yevalnud
    • By Yevalnud 8th Nov 19, 8:22 AM
    • 1 Posts
    • 0 Thanks
    Yevalnud
    I already have a 20k deposit. How will a help to buy ISA help me, if at all
    • eskbanker
    • By eskbanker 8th Nov 19, 10:34 AM
    • 11,916 Posts
    • 14,726 Thanks
    eskbanker
    I already have a 20k deposit. How will a help to buy ISA help me, if at all
    Originally posted by Yevalnud
    Nobody's forcing you to use one, but if you choose to do so, you can boost some of your money by 25% if you're making a qualifying property purchase and either increase your deposit or free up some of your existing pot for other uses.

    Most first time buyers jump at the opportunity to get some free money but if you don't feel you need or want it then as a taxpayer I'm not going to try to insist!
    • rockandroll
    • By rockandroll 8th Nov 19, 4:32 PM
    • 1 Posts
    • 0 Thanks
    rockandroll
    Split ISA across different banks
    I've just spoken to my bank and they've told me that I can open a Help-to-buy ISA with a different bank and still pay into my cash ISA with my original bank.

    So I would have a Cash ISA with Bank 1 and a Help-to-buy ISA with Bank 2 and I'd be able to pay, for example, £200 into each ISA every month.

    Does that sound right? Even if Bank 2 were HSBC, who don't allow a split? Or do they allow it when it's split with a different bank?
    • badger09
    • By badger09 8th Nov 19, 5:10 PM
    • 7,539 Posts
    • 7,050 Thanks
    badger09
    I've just spoken to my bank and they've told me that I can open a Help-to-buy ISA with a different bank and still pay into my cash ISA with my original bank.

    So I would have a Cash ISA with Bank 1 and a Help-to-buy ISA with Bank 2 and I'd be able to pay, for example, £200 into each ISA every month.

    Does that sound right? Even if Bank 2 were HSBC, who don't allow a split? Or do they allow it when it's split with a different bank?
    Originally posted by rockandroll
    No

    HTB ISA is a variety of Cash ISA and you can pay new money into only one of each type of ISA at a time.

    An exception is that some ISA managers - eg Nationwide, allow you to hold 'split' ISA ie a Cash & HTB ISA. BUT those providers are few and far between

    If HSBC have told you different, they are wrong. They're not the first, and sadly, won't be the last
    • ryanrenwick
    • By ryanrenwick 11th Nov 19, 6:24 PM
    • 1 Posts
    • 0 Thanks
    ryanrenwick
    Already bought our first house
    me and my partner have already bought our first house a few years ago but did not use the scheme to do so, does that mean we are unable to open up a Help to Buy ISA as we are now looking at buying a bigger house?

    Thanks
    • eskbanker
    • By eskbanker 11th Nov 19, 6:41 PM
    • 11,916 Posts
    • 14,726 Thanks
    eskbanker
    me and my partner have already bought our first house a few years ago but did not use the scheme to do so, does that mean we are unable to open up a Help to Buy ISA as we are now looking at buying a bigger house?
    Originally posted by ryanrenwick
    The HTB ISA scheme is limited to first-time buyers who've never owned a property before, rather than those who've already bought.

    https://www.helptobuy.gov.uk/documents/2015/12/eligibility-of-ftbs.pdf/
    • alwaysbluered
    • By alwaysbluered 12th Nov 19, 8:45 AM
    • 2 Posts
    • 0 Thanks
    alwaysbluered
    Can you use a help to buy isa for a council property
    I would like to know if you can use the help to buy isa to buy a council property
    • Ed-1
    • By Ed-1 12th Nov 19, 9:52 AM
    • 2,715 Posts
    • 1,468 Thanks
    Ed-1
    I would like to know if you can use the help to buy isa to buy a council property
    Originally posted by alwaysbluered
    Why wouldn't you be able to?
    • Rich2808
    • By Rich2808 12th Nov 19, 7:44 PM
    • 927 Posts
    • 730 Thanks
    Rich2808
    I would like to know if you can use the help to buy isa to buy a council property
    Originally posted by alwaysbluered
    Yes - as long as you are a first time buyer and take out a mortgage and the total property value is below £250k (£450k in London) - you can claim a HTB isa bonus
    • Markflatley
    • By Markflatley 15th Nov 19, 11:59 AM
    • 1 Posts
    • 0 Thanks
    Markflatley
    Apply for more than one?
    Hi, I applied for a Nationwide HTP ISA last Thursday, yet I havenít had any correspondence yet, not even a welcome email.
    Is it possible to apply for one with another building society/bank, or should I just wait? I donít want to miss out!
    • masonic
    • By masonic 15th Nov 19, 12:15 PM
    • 12,633 Posts
    • 10,134 Thanks
    masonic
    Hi, I applied for a Nationwide HTP ISA last Thursday, yet I havenít had any correspondence yet, not even a welcome email.
    Is it possible to apply for one with another building society/bank, or should I just wait? I donít want to miss out!
    Originally posted by Markflatley
    It would not be a good idea to open another one. Why not give them a call if you are concerned the application has not been received. It is unusual not to get a confirmation email after the application is submitted.
    • george4064
    • By george4064 15th Nov 19, 3:28 PM
    • 1,388 Posts
    • 1,383 Thanks
    george4064
    Hi, I applied for a Nationwide HTP ISA last Thursday, yet I havenít had any correspondence yet, not even a welcome email.
    Is it possible to apply for one with another building society/bank, or should I just wait? I donít want to miss out!
    Originally posted by Markflatley
    Double check with Nationwide before submitting another one!
    "If you arenít willing to own a stock for ten years, donít even think about owning it for ten minutesĒ Warren Buffett

    Save £12k in 2017 - #003 £12,427.51 (104%)
    Save £12k in 2018 - #004 £9,165.94 (46%)
    Save £12k in 2019 - #007 £11,332.36 (94%)
    • DMc222
    • By DMc222 15th Nov 19, 4:27 PM
    • 8 Posts
    • 2 Thanks
    DMc222
    Hi everyone can you use a LISA for building your first house or does it have to be buying? I know help to buy ISA are only for building! But I can’t find out anywhere about LISA rules thanks
    • masonic
    • By masonic 15th Nov 19, 6:11 PM
    • 12,633 Posts
    • 10,134 Thanks
    masonic
    Hi everyone can you use a LISA for building your first house or does it have to be buying? I know help to buy ISA are only for building! But I canít find out anywhere about LISA rules thanks
    Originally posted by DMc222
    You can use it towards buying land for a self-build property, providing you meet all of the other requirements such as taking out a mortgage.
    • Abbey1991
    • By Abbey1991 16th Nov 19, 2:01 PM
    • 138 Posts
    • 21 Thanks
    Abbey1991
    If you switch providers mid-year, can you continue to pay in for that tax year or does that count as subscribing to two in the same year?

    Example:
    Alison pays £200 in April, May and June to her Aldermore Help to Buy ISA
    She then transfers it to Nationwide and pays in £200 in July and thereafter
    • masonic
    • By masonic 16th Nov 19, 2:15 PM
    • 12,633 Posts
    • 10,134 Thanks
    masonic
    If you switch providers mid-year, can you continue to pay in for that tax year or does that count as subscribing to two in the same year?

    Example:
    Alison pays £200 in April, May and June to her Aldermore Help to Buy ISA
    She then transfers it to Nationwide and pays in £200 in July and thereafter
    Originally posted by Abbey1991
    No it doesn't count as subscribing to a second HTB ISA, a transferred ISA is still the same ISA, it's just under new management.
    • stehouk
    • By stehouk 18th Nov 19, 9:17 AM
    • 311 Posts
    • 130 Thanks
    stehouk
    Does anyone know what happens when the 12k maximum pay in limit is reached, i have searched santander's t&c's but cannot find any info, in fact i cannot find any info from any providers when iv'e googled it.
    what happens to the account, Will i have to stop paying in ?
    How long will i receive interest ? is interest included in the 12k, will i have to withdraw funds in order to keep it under the 12k
    • Hob345
    • By Hob345 18th Nov 19, 11:23 AM
    • 2 Posts
    • 0 Thanks
    Hob345
    NatWest HTB ISA delays Manchester
    A warning to anyone thinking of using NatWest. They claim their closing process is 5 working days, it isn't.
    8 October: partner submitted closing form to Natwest in person at branch

    6 Nov: received closing statement.


    5 Nov: I submitted closing form in person at branch

    18 Nov: still not closed and had to resubmit request and will now take 10 working days.
    • Rich2808
    • By Rich2808 18th Nov 19, 6:04 PM
    • 927 Posts
    • 730 Thanks
    Rich2808
    Does anyone know what happens when the 12k maximum pay in limit is reached, i have searched santander's t&c's but cannot find any info, in fact i cannot find any info from any providers when iv'e googled it.
    what happens to the account, Will i have to stop paying in ?
    How long will i receive interest ? is interest included in the 12k, will i have to withdraw funds in order to keep it under the 12k
    Originally posted by stehouk
    There is nothing to prevent you continuing to pay £200 a month into the account until November 2029 and thus achieving a balance of nearly £35,000 in theory (incl accrued interest) – assuming you don’t buy a property before then. However the maximum government bonus of £3,000 is payable on a balance of £12,000 – so the only benefit of the balance exceeding £12,000 is you earn the higher interest rate payable on help to buy isas (e.g. 2.5% vs a maximum of 1.4% now on other instant access cash isas). Of course once help to buy isas cease to be sold to new applicants its possible the rates on these accounts could be lowered.
    Some providers might impose their own £12k cap but I am not aware of any.

    https://www.nationwide.co.uk/-/media/MainSite/documents/products/savings/terms-and-conditions/P3039-help-to-buy-isa.pdf

    "23. Any part of the closing balance which exceeds £12,000 will be ignored when calculating the amount of the bonus"
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