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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!!!8217;t already, join the forum to reply. If you aren!!!8217;t sure how it all works, read our New to Forum? Intro Guide.
Page 74
    • Kevin brown
    • By Kevin brown 3rd Jan 18, 7:31 PM
    • 1 Posts
    • 0 Thanks
    Kevin brown
    Self build
    Can you use help to buy ISA for a new self build mortgage?
    • eskbanker
    • By eskbanker 3rd Jan 18, 7:45 PM
    • 7,446 Posts
    • 8,025 Thanks
    eskbanker
    Can you use help to buy ISA for a new self build mortgage?
    Originally posted by Kevin brown
    Possibly: which of these (from https://www.helptobuy.gov.uk/help-to-buy-isa/faq/) fits your circumstances?
    Can I use a Help to Buy: ISA bonus to buy land to build my first property on?
    Assuming that you meet all the other eligibility criteria, you will be able to use the government bonus towards the purchase of the land for a self-build property which is the only home you will own, be where you intend to live and be purchased with a mortgage. The land must be in the UK, have a price of 250,000 or less (with a higher price limit of 450,000 in London).

    Can I use the Help to Buy: ISA bonus to fund the construction of a home on land I own?
    No. You cannot use a government bonus to fund the construction of a home on land you already own.

    I own undeveloped or agricultural land, am I considered a first time buyer?
    Yes. If you own land which is undeveloped, and is not in the process of being developed into a residential property, you may still be a first time buyer and able to use a government bonus to purchase a home.
    • natashaclueit
    • By natashaclueit 3rd Jan 18, 7:48 PM
    • 1 Posts
    • 0 Thanks
    natashaclueit
    putting down a deposit
    Really interested in opening a help to buy isa, but as it is limited to how much you can save per month, i was wondering if it is possible to put down a deposit using both a help to buy isa and other savings from another account too? (In Scotland).

    TIA
    • eskbanker
    • By eskbanker 3rd Jan 18, 8:01 PM
    • 7,446 Posts
    • 8,025 Thanks
    eskbanker
    Really interested in opening a help to buy isa, but as it is limited to how much you can save per month, i was wondering if it is possible to put down a deposit using both a help to buy isa and other savings from another account too? (In Scotland).
    Originally posted by natashaclueit
    The short answer to your question is yes, it is possible to combine HTB money with other savings.

    However, you may find it worthwhile to use a Lifetime ISA instead, as you can save 4K per tax year in those (without a monthly restriction), so you could pay in 8K in just over three months from now, which would then be boosted to 10K by the government's 25% bonus by late May, although you'd have to wait at least a year after opening one before using it for your first property purchase. See http://www.moneysavingexpert.com/savings/lifetime-ISAs for further details, including a side-by-side comparison with HTB.
    • Straightbat
    • By Straightbat 6th Jan 18, 1:59 PM
    • 11 Posts
    • 1 Thanks
    Straightbat
    "You're not supposed to contribute to a Help to Buy ISA and a cash ISA in the same year, but..."

    You do well to cover junior ISAs elsewhere in the help to buy guide but you do not mention them in this subsection. If a child opens a help to buy ISA, can 1. he or she; or 2. his or her parents, pay into an existing junior ISA for the same child in the same tax year?

    Thank you.

    N.b. thank you for the invitation to post on these forums if we have any questions about the guide. However I've never found a forum system harder to navigate and understand than this one, and I use several!
    • eskbanker
    • By eskbanker 6th Jan 18, 7:04 PM
    • 7,446 Posts
    • 8,025 Thanks
    eskbanker
    "You're not supposed to contribute to a Help to Buy ISA and a cash ISA in the same year, but..."

    You do well to cover junior ISAs elsewhere in the help to buy guide but you do not mention them in this subsection. If a child opens a help to buy ISA, can 1. he or she; or 2. his or her parents, pay into an existing junior ISA for the same child in the same tax year?
    Originally posted by Straightbat
    The short answer to your question is that yes, payments can be made into both a JISA and a HTB ISA in the same tax year, between the (holder's) ages of 16 and 18, but a more detailed explanation is at clause 22.5 of the full ISA scheme rules, which will always be a more reliable source of accurate information than a summary article on MSE, which can't possibly be expected to cover all of the points in the full 361 pages of the official document!
    • Straightbat
    • By Straightbat 7th Jan 18, 12:43 AM
    • 11 Posts
    • 1 Thanks
    Straightbat
    Thank you for your reply.

    The MSE guide does say, "We checked this with HMRC and it told us that just as you can have a 'normal' cash ISA and a junior ISA at the same time if you're aged 16 or 17, the same applies with a Help to Buy ISA.

    However, you must open the Help to Buy ISA yourself in your own name !!!8211; a parent can't do it for you."

    But anyone can have multiple ISAs - It's just whether you can subscribe to them both in the same tax year or not. I have looked at the clause in the guidance you have recommended thank you, and it is clear that you can, so I don't think you need to be so cautious about your advice in your post! However, it is helpful to know that you can subscribe up to the individual subscription limits for both between 16 and 18!

    Thank you very much again for your help.
    • Warren1989
    • By Warren1989 13th Jan 18, 11:37 AM
    • 31 Posts
    • 3 Thanks
    Warren1989
    I'm buying with cash, is there any way I can use my funds in either a HTB ISA or a LISA to go towards the purchase?
    • AnnaMe
    • By AnnaMe 14th Jan 18, 10:07 AM
    • 1 Posts
    • 0 Thanks
    AnnaMe
    Help
    Thank you for all that useful information. I have a couple more questions, as I am not sure I fully understand. I was hoping to save up enough to buy a small place by next year. I currently have a poor rate easy access cash ISA I had for years and suppose, should apply for a Help to Buy ISA.
    Would you suggest to switch my ISA first and then apply for a help to buy?

    So I can move the 1200 and then the 200 each month, but keep my additional savings in the ISA? I know it was said that you could not have both simultaneously, but if you had an ISA before you can keep it?

    many thanks,
    Anna
    • Alexland
    • By Alexland 14th Jan 18, 10:22 AM
    • 2,580 Posts
    • 1,958 Thanks
    Alexland
    Thank you for all that useful information. I have a couple more questions, as I am not sure I fully understand. I was hoping to save up enough to buy a small place by next year. I currently have a poor rate easy access cash ISA I had for years and suppose, should apply for a Help to Buy ISA. Would you suggest to switch my ISA first and then apply for a help to buy?
    Originally posted by AnnaMe
    You can only contribute to one Cash ISA (and HTB ISA is a type of Cash ISA) in each tax year but your are fine to ISA transfer it between providers and continue contributing.

    So if you have (or plan to) made any contributions to your existing Cash ISA this tax year you will need a Split Cash ISA from someone like Nationwide where they will manage both your Cash ISA and HTB ISA account within the same HMRC Cash ISA wrapper. In which case, to follow the rules, you would ISA transfer your Cash ISA to the Split Cash ISA provider before contributing to a new HTB ISA with the same provider.

    If you have not made any contributions to your Cash ISA this tax year you are fine to open a HTB ISA with anyone and can move your old Cash ISA to anyone. But you can only contribute to one of them in each tax year.

    Also consider the Lifetime ISA (with is not a type of Cash ISA) where you can contribute up to 4k each tax year with a 25% bonus - you can get a cash (with a lowercase 'c') version from Skipton but the account needs to be open 12 months before you can use it to buy a property.

    https://www.skipton.co.uk/savings/isas/cash-lifetime-isa

    If you go for the HTB ISA or Lifetime ISA (you can only use one towards a first time property purchase) please read the terms carefully to make sure it's an appropriate product for your requirements.

    So I can move the 1200 and then the 200 each month, but keep my additional savings in the ISA? I know it was said that you could not have both simultaneously, but if you had an ISA before you can keep it?
    Originally posted by AnnaMe
    Yes but you can do this if both accounts are with the same Split Cash ISA Provider. Otherwise your Cash ISA must have had no contributions this year or in any future years in which you contribute to the HTB ISA.

    https://www.nationwide.co.uk/products/savings/help-to-buy-isa/features-and-benefits

    "If you!!!8217;re 16 or over you can open an account (provided you meet the eligibility criteria!!!8224;), with an initial deposit of up to 1,200, and then make further contributions of up to 200 per calendar month. (You can contribute to another Nationwide cash ISA product at the same time, as long as you don't exceed your total ISA tax-free savings allowance each year.)"

    Alex.
    Last edited by Alexland; 14-01-2018 at 10:38 AM.
    • benmiskowicz
    • By benmiskowicz 16th Jan 18, 12:07 PM
    • 1 Posts
    • 0 Thanks
    benmiskowicz
    Hi, in regards to a self-build I've been looking through the FAQ's and just wanted some confirmation, my partner and I own land that we have planning permission on and are in the process of getting a self build mortgage, neither of us own a home already. Will we be entitled to the bonus in these circumstances? Thanks in advance!
    • eskbanker
    • By eskbanker 16th Jan 18, 12:33 PM
    • 7,446 Posts
    • 8,025 Thanks
    eskbanker
    Hi, in regards to a self-build I've been looking through the FAQ's and just wanted some confirmation, my partner and I own land that we have planning permission on and are in the process of getting a self build mortgage, neither of us own a home already. Will we be entitled to the bonus in these circumstances? Thanks in advance!
    Originally posted by benmiskowicz
    The FAQs are pretty clear on this, as quoted in post #1462 above:
    Can I use the Help to Buy: ISA bonus to fund the construction of a home on land I own?
    No. You cannot use a government bonus to fund the construction of a home on land you already own.
    • Alexland
    • By Alexland 16th Jan 18, 3:24 PM
    • 2,580 Posts
    • 1,958 Thanks
    Alexland
    I'm buying with cash, is there any way I can use my funds in either a HTB ISA or a LISA to go towards the purchase?
    Originally posted by Warren1989
    Sorry we missed this one. Both the HTB and Lifetime ISAs require that the purchase is supported with a mortgage. You are fortunate to be in a good enough position for the government to feel you don't need their help.
    • Hectors_House
    • By Hectors_House 21st Jan 18, 5:35 AM
    • 2 Posts
    • 1 Thanks
    Hectors_House
    Will I be Eligible for a HTB ISA?
    I've had a mortgage previously, approximately 12 years ago. According to mortgage advice I've received I'd now be classed as a First Time Buyer, however as I understand it I wouldn't be eligible for a Help to Buy ISA because of this... could anybody clarify this for me and / or recommend an alternative? Thanks!
    • Alexland
    • By Alexland 21st Jan 18, 8:49 AM
    • 2,580 Posts
    • 1,958 Thanks
    Alexland
    I've had a mortgage previously, approximately 12 years ago. According to mortgage advice I've received I'd now be classed as a First Time Buyer, however as I understand it I wouldn't be eligible for a Help to Buy ISA because of this... could anybody clarify this for me and / or recommend an alternative? Thanks!
    Originally posted by Hectors_House
    The mortgage provider might consider you to be a first time buyer (nothing to sell, no mortgage to port, etc) but the government certainly will not so you will not be eligible for a HTB ISA or to use a LISA bonus towards a property purchase.

    Those are the rules on who the government wants to help - it's a targeted initiative.

    The best suggestion I can give is to make the most of 5% current account (Nationwide Flex Direct) and linked 12 month regular savers (Nationwide, HSBC, First Direct, Santander, etc). Some regular savers cannot be withdrawn early.

    If under 40 you can still have a LISA with bonus to save towards retirement which is usually best alongside a workplace pension to harvest employer contributions.

    Alex
    Last edited by Alexland; 21-01-2018 at 9:00 AM.
    • Hectors_House
    • By Hectors_House 21st Jan 18, 11:19 AM
    • 2 Posts
    • 1 Thanks
    Hectors_House
    Help to Buy ISA
    Thanks very much Alexland... thought as much! Thanks for the suggestions, I'll look into it - much appreciated :-)
    • Kirsty125
    • By Kirsty125 29th Jan 18, 12:56 PM
    • 1 Posts
    • 0 Thanks
    Kirsty125
    Hi, not sure how this works but have a question
    If you wanted a joint mortgage would you both have to have an ISA each? and if you did would this mean you wouldn't get the maximum amount, as total savings would be 12 so we would save 6 each in an account
    Or could you get an ISA in one name and both save into it then have a joint name on the mortgage?
    Thanks
    • eskbanker
    • By eskbanker 29th Jan 18, 1:08 PM
    • 7,446 Posts
    • 8,025 Thanks
    eskbanker
    If you wanted a joint mortgage would you both have to have an ISA each? and if you did would this mean you wouldn't get the maximum amount, as total savings would be 12 so we would save 6 each in an account
    Or could you get an ISA in one name and both save into it then have a joint name on the mortgage?
    Originally posted by Kirsty125
    The ISA(s) and mortgage are independent of each other, so whether you have 0, 1 or 2 HTB ISAs contributing to your mortgage deposit, the end result is the same. As you say, two people with a HTB ISA each will be able to save a larger total amount, but if you're anticipating reaching anywhere near the maximum then, given the time it takes to achieve this in HTB ISAs, you'd probably be better off with Lifetime ISAs instead....
    • thomas_s_27
    • By thomas_s_27 29th Jan 18, 10:40 PM
    • 1 Posts
    • 0 Thanks
    thomas_s_27
    Hi, would really appreciate some advice and thank you in advance,
    Me and my partner are saving for a house and are looking to buy the house we are currently renting at he end of march next year. The deposit we need is about 10,000, now im currently saving more than the 200 maximum deposit each month as is my girlfriend, so if i setup a HTB ISA and she also setup up a HTB ISA the most we will have combined is 7,600 is this correct? therefore we will have 2,400 to add to our savings in march can we add the 2,400 at the end and then still claim the 1900 combined bonus?

    Im sorry if iv gone the long way around this and i really do appreciate any advice anyone can offer.
    • eskbanker
    • By eskbanker 29th Jan 18, 11:51 PM
    • 7,446 Posts
    • 8,025 Thanks
    eskbanker
    Me and my partner are saving for a house and are looking to buy the house we are currently renting at he end of march next year. The deposit we need is about 10,000, now im currently saving more than the 200 maximum deposit each month as is my girlfriend, so if i setup a HTB ISA and she also setup up a HTB ISA the most we will have combined is 7,600 is this correct? therefore we will have 2,400 to add to our savings in march can we add the 2,400 at the end and then still claim the 1900 combined bonus?
    Originally posted by thomas_s_27
    You'd be best opening a Lifetime ISA each, as these allow you to save up to 4K per tax year, so you'd be able to get a larger government bonus by March 2019 than you'd get with HTBs if you get cracking asap, bearing in mind you have to have them open for a full year before using them for a property purchase....
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