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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 77
    • eskbanker
    • By eskbanker 14th Apr 18, 6:24 PM
    • 7,879 Posts
    • 8,740 Thanks
    eskbanker
    I have HTB ISA account opened. Me and my wife are going to buy a new house soon. House full price is 290000 but we would like to use HTB Equity Loan so mortgage amount is 225000.
    Will we get tha ISA bonus or not? Does The government look on house price or mortgage amount?
    Originally posted by Sydney85
    It's house price not mortgage value that counts - bonus award is conditional on the property value being no more than £250K (£450K in London) so if you're not in London then you're out of luck if the property is valued at £290K....
    • geiger
    • By geiger 15th Apr 18, 12:46 AM
    • 3 Posts
    • 1 Thanks
    geiger
    Hi,

    My partner made a mistake and set up a Help to buy isa last year and paid £1000 deposit by online bank transfer to open the isa then made regular payments also via bank transfer from her RBS account and not by standing order.

    All the payments were accepted and show up in her account but she is worried that when it comes to closing the account she will not get any of the bonus, is this right?

    Thanks
    Last edited by geiger; 15-04-2018 at 12:53 AM.
    • dekkard
    • By dekkard 15th Apr 18, 12:55 AM
    • 118 Posts
    • 41 Thanks
    dekkard
    Hi,

    My partner made a mistake and set up a Help to buy isa last year and paid £1000 deposit by online bank transfer to open the isa then made regular payments also via bank transfer and not standing order.

    All the payments were accepted and show up in her account but she is worried that when it comes to closing the account she will not get any of the bonus, is this right?

    Thanks
    Originally posted by geiger
    Why do you think bank transfers are the wrong way to pay into the ISA? Does the bank say so?

    Either way, the bank would probably have told you if there was an issue. Mine was very quick to send a letter when I overpaid by £1 on one occasion!
    • eskbanker
    • By eskbanker 15th Apr 18, 12:58 AM
    • 7,879 Posts
    • 8,740 Thanks
    eskbanker
    My partner made a mistake and set up a Help to buy isa last year and paid £1000 deposit by online bank transfer to open the isa then made regular payments also via bank transfer from her RBS account and not by standing order.

    All the payments were accepted and show up in her account but she is worried that when it comes to closing the account she will not get any of the bonus, is this right?
    Originally posted by geiger
    If the payments were accepted then she has nothing to worry about.

    There is nothing in the HTB scheme rules about exactly how they're funded (i.e. bank transfer v standing order) but some products have their own individual Ts & Cs about this sort of thing, but even if a saver breaches those it wouldn't affect claiming the bonus from the government.

    If the product Ts & Cs insist on actual standing orders then it would obviously be best to pay in that way now she's aware of this....
    • geiger
    • By geiger 15th Apr 18, 1:11 AM
    • 3 Posts
    • 1 Thanks
    geiger
    Why do you think bank transfers are the wrong way to pay into the ISA? Does the bank say so?

    Either way, the bank would probably have told you if there was an issue. Mine was very quick to send a letter when I overpaid by £1 on one occasion!
    Originally posted by dekkard
    Yes, it states in Halifax t&c that all monthly payments are to be paid via standing order only
    • dekkard
    • By dekkard 15th Apr 18, 1:14 AM
    • 118 Posts
    • 41 Thanks
    dekkard
    Yes, it states in Halifax t&c that all monthly payments are to be paid via standing order only
    Originally posted by geiger
    Sounds like eskbanker has answered your query.

    Why not move the isa to Barclays and get the top rate?
    • geiger
    • By geiger 15th Apr 18, 1:32 AM
    • 3 Posts
    • 1 Thanks
    geiger
    Sounds like eskbanker has answered your query.

    Why not move the isa to Barclays and get the top rate?
    Originally posted by dekkard
    we will buying a house in the next month or two, it doesn't seem worth it to move now, thanks for the tip though
    • RainTown
    • By RainTown 15th Apr 18, 11:06 AM
    • 3 Posts
    • 0 Thanks
    RainTown
    I am confused for rules with HTB and other ISA per tax year.

    I have some funds in HTB and Cash ISAs @ Nationwide. I have, for a couple of years, added 200 per month to the HTB ISA, and to the cash ISA "when I can". I have approx 10x the funds in Cash ISA as in the HTB ISA

    In 2018/2019 I have not added to either yet.

    The nationwide cash ISA interest rate is now not competitive, so I want to move elsewhere. Lets say I move to Virgin.

    Can I do this and continue to pay 200 per month to Natonwide HTB ISA?

    If that is not allowed, can I just "freeze" my HTB ISA @ Nationwide, not deposit anything further in 2018/2019, and move Cash ISA funds to Virgin?

    I want to keep my HTB ISA, though house purchase is not imminent.

    But I also want to use the full 20k ISA allowance in 2018/9 if I can and at a competitive interest rate.

    Thanks for any advice!!
    • Alexland
    • By Alexland 15th Apr 18, 11:31 AM
    • 3,025 Posts
    • 2,368 Thanks
    Alexland
    Sure you can move your Cash ISA contributions from previous tax year(s) to a new provider however if you intend to continue contributing to the HTB ISA this tax year your Cash ISA part (for at least this tax year) must be with the HTB provider.
    Last edited by Alexland; 15-04-2018 at 11:34 AM.
    • RainTown
    • By RainTown 17th Apr 18, 11:14 PM
    • 3 Posts
    • 0 Thanks
    RainTown
    But can I open a second HTB ISA with second provider (one who would also offer a Cash ISA)?

    I presume not, so I am stuck between sticking with Nationwide to be able to continue to top up the HTB ISA, and accepting the poor interest rate on their cash ISA, or opening and transferring to new cash ISA while freezing HTB ISA at Nationwide?

    RT
    • eskbanker
    • By eskbanker 18th Apr 18, 12:14 AM
    • 7,879 Posts
    • 8,740 Thanks
    eskbanker
    But can I open a second HTB ISA with second provider (one who would also offer a Cash ISA)?
    Originally posted by RainTown
    No, you can only have one HTB ISA, as per https://www.helptobuy.gov.uk/help-to-buy-isa/faq/#bb8e24ea-e1f7-648f-8ce9-ff0000ad17aa:
    How many Help to Buy: ISAs can I have?

    You can only have one Help to Buy: ISA at any one time. Unlike a cash ISA, you canít open a new one every year. But you can transfer your Help to Buy: ISA from one bank, building society or credit union to another.
    I presume not, so I am stuck between sticking with Nationwide to be able to continue to top up the HTB ISA, and accepting the poor interest rate on their cash ISA, or opening and transferring to new cash ISA while freezing HTB ISA at Nationwide?
    Originally posted by RainTown
    If you want to pay into both a HTB ISA and a non-HTB cash ISA this tax year then they both need to be with one of the providers who offer split ISAs, others being listed at https://www.moneysavingexpert.com/savings/best-cash-isa under "Can I split between a fixed and easy-access ISA (or regular saver ISA)?".

    If you only want to pay into an HTB (and not another cash ISA) you can either keep it with Nationwide or transfer it to any other HTB ISA provider and keep paying no more than £200/month. You can pay the rest of your allowance into other ISA types, such as Lifetime ISA or even S&S ISA (to minimise investment risk you could for example put £17,600 into a S&S ISA late in the tax year, keep it uninvested and transfer it to a cash ISA in early 2019/20).

    Or if you're happy not to pay into your HTB any more, you can open and fund a cash ISA with any other provider.

    Always best to consider total return and your end game though - cash ISA rates are generally poor just now (for a number of years) and chances are your money will work harder for you if you fund a Lifetime ISA (or a HTB) and put your other money elsewhere in accounts paying better than cash ISAs, such as regular savers and/or interest-paying current accounts.
    • RainTown
    • By RainTown 20th Apr 18, 1:23 PM
    • 3 Posts
    • 0 Thanks
    RainTown
    Lifetime ISA not an option for me as I am not considered a "young person".

    S&S ISA not an option I am considering.

    Nationwide's new(ish) "Single Access ISAs" seem to offer me the best I can get for now, as I can continue to pay into HTB and have decent interest rate on Cash ISA.
    Last edited by RainTown; 20-04-2018 at 1:52 PM.
    • Rich2808
    • By Rich2808 20th Apr 18, 7:07 PM
    • 639 Posts
    • 486 Thanks
    Rich2808
    But can I open a second HTB ISA with second provider (one who would also offer a Cash ISA)?

    I presume not, so I am stuck between sticking with Nationwide to be able to continue to top up the HTB ISA, and accepting the poor interest rate on their cash ISA, or opening and transferring to new cash ISA while freezing HTB ISA at Nationwide?

    RT
    Originally posted by RainTown
    Nationwide pays 2% on their HTB isa Ė which is not that bad. And as well as being a flexible isa provider and a split isa provider also allows you to fund your help to buy isa with prior year isa funds. So you donít need to use your 2018-19 allowance Ė you can simply transfer in prior year funds online monthly via their online transfer system to fund your HTB isa (although its easier if you have the other isa(s) with them).

    Its really up to you whether a slightly higher rate is better than administrative flexibility in terms of your isa holdings.

    PS I agree its rather unfair the lifetime isa isn't available to FTBs over 40 - if nothing else because of the £450k property purchase limit outside London. Finding homes under £250k isn't easy in the south east!
    • cafrenchie
    • By cafrenchie 23rd Apr 18, 2:07 PM
    • 1 Posts
    • 0 Thanks
    cafrenchie
    Can Help to Buy ISAs be used with a partners Lifetime ISA when buying a joint first home?
    I'm looking to buy a home with my partner in 2+ years. She has a Help-to-Buy ISA. I've compared Lifetime ISA's and Help-to-Buy ISA's, it seems that Lifetime ISA's are generally better for first time buyers who can avoid touching the money.

    I can see that 2 people who buy together can both use their Help-to-Buy ISA's in conjunction when buying, and both receive the 25% bonuses. But if I open a Lifetime ISA, can it be used along with my partner's Help-to-Buy ISA so we both receive the bonuses?

    Thanks in advance!
    • eskbanker
    • By eskbanker 23rd Apr 18, 2:53 PM
    • 7,879 Posts
    • 8,740 Thanks
    eskbanker
    I'm looking to buy a home with my partner in 2+ years. She has a Help-to-Buy ISA. I've compared Lifetime ISA's and Help-to-Buy ISA's, it seems that Lifetime ISA's are generally better for first time buyers who can avoid touching the money.

    I can see that 2 people who buy together can both use their Help-to-Buy ISA's in conjunction when buying, and both receive the 25% bonuses. But if I open a Lifetime ISA, can it be used along with my partner's Help-to-Buy ISA so we both receive the bonuses?
    Originally posted by cafrenchie
    Yes, for a couple who are both first time buyers, one can use a HTB and the other a LISA, both obtaining bonuses by doing so.
    • cdewd
    • By cdewd 23rd Apr 18, 3:01 PM
    • 2 Posts
    • 0 Thanks
    cdewd
    LISA oversubscription
    Hello, I recently transferred my Halifax Help to Buy ISA into a Skipton LISA. Unfortunately I have oversubscribed by £2500 as I had £6500 in my Help to Buy ISA and didn't realise I could only transfer up to £4000 (partly because I had already paid into the HTB ISA within the 2017/18 tax year).

    I was wondering what I should do with the extra £2500 - should I open a new Help to Buy ISA (my Halifax one is now closed)?

    Thanks
    • eskbanker
    • By eskbanker 23rd Apr 18, 3:10 PM
    • 7,879 Posts
    • 8,740 Thanks
    eskbanker
    I recently transferred my Halifax Help to Buy ISA into a Skipton LISA. Unfortunately I have oversubscribed by £2500 as I had £6500 in my Help to Buy ISA and didn't realise I could only transfer up to £4000 (partly because I had already paid into the HTB ISA within the 2017/18 tax year).
    Originally posted by cdewd
    How recently did you transfer? If you used Skipton's published process to initiate the transfer before 1 March then your pre-17/18 HTB contributions didn't count towards the £4K annual LISA limit and it was therefore possible to transfer significantly more than £4K.

    I was wondering what I should do with the extra £2500 - should I open a new Help to Buy ISA (my Halifax one is now closed)?
    Originally posted by cdewd
    You can open another HTB ISA but you couldn't use both it and the LISA for a 25% bonus on a first-time property purchase. Your £4K LISA allowance would have reset on 6 April so if the transfer was before that then you can put the whole £2500 into the LISA now.
    • cdewd
    • By cdewd 23rd Apr 18, 10:35 PM
    • 2 Posts
    • 0 Thanks
    cdewd
    [QUOTE=eskbanker;74198028]How recently did you transfer? If you used Skipton's published process to initiate the transfer before 1 March then your pre-17/18 HTB contributions didn't count towards the £4K annual LISA limit and it was therefore possible to transfer significantly more than £4K.

    Thanks, I did use the Skipton's published process - I think the problem may be that I contributed £2400 into my help to buy ISA in 2017/18 (i.e. £200 per month as the maximum) am I right in thinking that this money cannot be transferred into the LISA as then I am effectively paying into 2 ISAs in one year? However I did think you could pay into a LISA and a Help to Buy ISA so I'm still slightly confused. The only other factor may be that I have also transferred £4000 from a barclays cash ISA into the LISA, would this have affected things? Thanks
    • eskbanker
    • By eskbanker 23rd Apr 18, 11:44 PM
    • 7,879 Posts
    • 8,740 Thanks
    eskbanker
    Thanks, I did use the Skipton's published process - I think the problem may be that I contributed £2400 into my help to buy ISA in 2017/18 (i.e. £200 per month as the maximum) am I right in thinking that this money cannot be transferred into the LISA as then I am effectively paying into 2 ISAs in one year? However I did think you could pay into a LISA and a Help to Buy ISA so I'm still slightly confused. The only other factor may be that I have also transferred £4000 from a barclays cash ISA into the LISA, would this have affected things? Thanks
    Originally posted by cdewd
    Ah yes, another source of funding for the LISA would certainly have conflicted - the rule up to 5 April 2018 was that you could transfer in all pre-17/18 HTB money without affecting your £4K 17/18 LISA allowance, but yes, you weren't allowed to pay into a LISA both £2400 of 17/18 HTB money and another £4K from elsewhere as well.

    You can open another HTB but you'd be starting again from scratch with the £1K initial deposit and then £200/month thereafter, rather than being able to transfer in a lump sum, or alternatively pay it all into the LISA against your 18/19 £4K allowance.
    • Gemblebeans
    • By Gemblebeans 24th Apr 18, 11:22 AM
    • 1 Posts
    • 0 Thanks
    Gemblebeans
    Can I get the benefit as a trustee
    I have become a trustee along with other family members of my Mums house and am a bit confused as to whether I can still be classed as a first time buyer, Iíve been saving into a help to buy ISA and am looking to buy this year. On the one hand it seems I am but it says about being a beneficiary in the future, I just wondered if anyone can clarify the beneficiary part for me?! I donít earn or receive anything from the house as a trustee. Thank you
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