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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 79
    • baguettes
    • By baguettes 10th Jul 18, 2:09 PM
    • 4 Posts
    • 0 Thanks
    baguettes
    Hi all,
    In a bit of a pickle. I have had my conveyancer apply for my HTB ISA bonus and received a rejection. The situation is:

    Way back I started a Lloyds HTB ISA and put in £200. The next day I saw Nationwide had a better interest rate so withdrew my £200 and transferred it to a new Nationwide HTB ISA then continued to save only with Nationwide until applying for the bonus. I neglected to close the Lloyds HTB, which is my mistake.

    Is there any way I can get around this mistake and receive my bonus?
    • masonic
    • By masonic 10th Jul 18, 6:21 PM
    • 9,662 Posts
    • 6,862 Thanks
    masonic
    Hi all,
    In a bit of a pickle. I have had my conveyancer apply for my HTB ISA bonus and received a rejection. The situation is:

    Way back I started a Lloyds HTB ISA and put in £200. The next day I saw Nationwide had a better interest rate so withdrew my £200 and transferred it to a new Nationwide HTB ISA then continued to save only with Nationwide until applying for the bonus. I neglected to close the Lloyds HTB, which is my mistake.

    Is there any way I can get around this mistake and receive my bonus?
    Originally posted by baguettes
    Your biggest problem will be getting it sorted out in time to complete on the property. The following will be useful in doing so:

    https://www.gov.uk/guidance/close-void-or-repair-an-isa-if-youre-an-isa-manager#investor-repairs
    Investor error - self transfer
    ISA investors must transfer their ISAs through the ISA manager. Investors can’t transfer an ISA by closing it and opening a new ISA with the new ISA manager (commonly known as ‘self-transfer’), even if the investor is moving from one ISA product to another with the same manager.

    Self-transfer is not available in respect of Lifetime ISAs.

    However, where:
    - the investor subscribes to 2 cash ISAs, in the same tax year
    - subscriptions to the first ISA subscribed to were valid
    - all of the current year subscriptions to the first ISA subscribed to were withdrawn (whether or not that ISA was closed) before subscriptions to the second ISA were made

    The subscriptions to the second ISA may be valid, subject to the guidance below.

    - The first cash ISA to be self-transferred in a tax year is valid, and need not be repaired.
    - The second (and any subsequent) self-transferred cash ISA is not valid and is not eligible for repair.

    The first cash ISA may be closed and all the funds held in the ISA withdrawn (including any subscriptions for earlier years) or the first cash ISA may remain open and after the self-transfer will hold only subscriptions which were made in previous years. If the ISA remains open, no further subscriptions can be made to it in the tax year of the self-transfer.
    • Ian Pk12
    • By Ian Pk12 10th Jul 18, 9:47 PM
    • 1 Posts
    • 0 Thanks
    Ian Pk12
    Transfer H2B to another provider
    Hello. I currently have a H2B ISA that has a declining rate, I would like to transfer to a new H2B with another provider. I read the last thread on this (2016?) but apologies, I didn't get an answer.

    It seems that I cannot transfer the existing balance, but am limited to £1200. Is this correct?

    Is there a way I can transfer the entire balance to a new provider?
    Thanks
    • eskbanker
    • By eskbanker 11th Jul 18, 12:05 AM
    • 7,821 Posts
    • 8,638 Thanks
    eskbanker
    Hello. I currently have a H2B ISA that has a declining rate, I would like to transfer to a new H2B with another provider. I read the last thread on this (2016?) but apologies, I didn't get an answer.

    It seems that I cannot transfer the existing balance, but am limited to £1200. Is this correct?

    Is there a way I can transfer the entire balance to a new provider?
    Thanks
    Originally posted by Ian Pk12
    If the new account accepts inbound transfers then you can transfer the entire balance, provided that you use the new provider's ISA transfer process.
    • Ellen9753
    • By Ellen9753 11th Jul 18, 11:44 AM
    • 1 Posts
    • 0 Thanks
    Ellen9753
    Help to buy maximum age
    I've read that the HTB ISA is available for those aged 18 to 39. I'm 40 in December this year, and I'm struggling to work out if that means that so long as I open the account before my birthday that I can continue to save after my birthday, or if I would only be able to deposit money until my 40th birthday.

    Would I still be able to claim the bonus after my birthday?

    I'm very confused!
    • Alexland
    • By Alexland 11th Jul 18, 1:25 PM
    • 2,949 Posts
    • 2,304 Thanks
    Alexland
    I've read that the HTB ISA is available for those aged 18 to 39. I'm 40 in December this year, and I'm struggling to work out if that means that so long as I open the account before my birthday that I can continue to save after my birthday, or if I would only be able to deposit money until my 40th birthday.
    Originally posted by Ellen9753
    I think you are getting confused between the Lifetime ISA (LISA) and the HTB ISA. The HTB ISA is open to those 16 and over with no upper age limit:

    https://www.helptobuy.gov.uk/help-to-buy-isa/who-is-eligible/

    Alex
    • Loulee23
    • By Loulee23 22nd Jul 18, 3:15 PM
    • 1 Posts
    • 0 Thanks
    Loulee23
    Close & Re-open HBI query
    Hi
    Can someone tell me if it is possible to close my Help to buy ISA which i have had for a number of years but currently have no savings in to then go and re-open a new one to be able to put the £1200 into straight away?

    My assumption would be they dont allow you to do this, but worth an ask!

    Thanks

    Louise
    • dekkard
    • By dekkard 22nd Jul 18, 3:20 PM
    • 113 Posts
    • 41 Thanks
    dekkard
    Hi
    Can someone tell me if it is possible to close my Help to buy ISA which i have had for a number of years but currently have no savings in to then go and re-open a new one to be able to put the £1200 into straight away?

    My assumption would be they dont allow you to do this, but worth an ask!

    Thanks

    Louise
    Originally posted by Loulee23
    See this page: https://www.helptobuy.gov.uk/help-to-buy-isa/

    Does this FAQ from that page answer your question?

    If I transfer my Help to Buy: ISA to another bank, building society or credit union, can I put in the maximum initial deposit of £1,200 again?

    No. You can transfer your Help to Buy: ISA to a different bank, building society or credit union, but your allowances will stay the same. So, even if you did not save the full £1,200 when you first opened your Help to Buy: ISA, you will not be able to save more than your monthly allowance of up to £200.
    • masonic
    • By masonic 22nd Jul 18, 4:23 PM
    • 9,662 Posts
    • 6,862 Thanks
    masonic
    Can someone tell me if it is possible to close my Help to buy ISA which i have had for a number of years but currently have no savings in to then go and re-open a new one to be able to put the £1200 into straight away?
    Originally posted by Loulee23
    If you have not paid any money into your HTB ISA during this tax year, then you could close it and open a new one elsewhere. If you have paid into it this tax year, you'd have to wait until the next to open a new one. My understanding is that you could start afresh and deposit £1200 in the first month.
    • mije1983
    • By mije1983 22nd Jul 18, 5:19 PM
    • 3,543 Posts
    • 20,063 Thanks
    mije1983
    See this page: https://www.helptobuy.gov.uk/help-to-buy-isa/

    Does this FAQ from that page answer your question?

    If I transfer my Help to Buy: ISA to another bank, building society or credit union, can I put in the maximum initial deposit of £1,200 again?
    Originally posted by dekkard

    A transfer is different to a closure/new account opening though.

    • masonic
    • By masonic 22nd Jul 18, 8:16 PM
    • 9,662 Posts
    • 6,862 Thanks
    masonic
    A transfer is different to a closure/new account opening though.
    Originally posted by mije1983
    Yes, hopefully Loulee23 comes back and reads the other responses. A transfer would not be the right thing to do in that position - unless she's funded her HTB ISA this tax year.
    • Jampa9
    • By Jampa9 8th Aug 18, 7:07 PM
    • 4 Posts
    • 0 Thanks
    Jampa9
    HELP! To Buy
    Hi everyone,

    So this is my scenario.

    Me and my partner have had an off accepted on a house, mortgage offer accepted, 5% deposit, etc.

    We both have H2B ISA's. I have been told by many people that once we pay our exchange deposit and apply for our government bonus, this bonus can then be put into our bank accounts, to buy house things (furniture etc).

    I have just had an email from our solicitors asking for our ISA info that said "Please note that the bonus can only be used for the payment of the purchase price - not as either part of the deposit or refunded to you after completion".

    We are now panicking because we need this money to furnish our house (£1,150). I rang my mortgage broker and he said that he didn't think it has to be used towards the house and could go into our accounts, and that he's done hundreds before.

    After reading loads and receiving that email I am now sure that the bonus needs to go towards the house. But if it can't go towards our exchange deposit (5%) and our lender is loaning us 95% then where is this money going? Our mortgage broker knew we both had ISA's and never factored in the bonus' to the mortgage offer and said he never has done before either.

    I am speaking to my solicitors tomorrow (hopefully, they are useless) but I wondered if anyone has been in this situation before.

    Can the bonus be transferred into our current accounts after exchanging contracts?

    Thanks in advance.

    Jamie
    • eskbanker
    • By eskbanker 8th Aug 18, 7:25 PM
    • 7,821 Posts
    • 8,638 Thanks
    eskbanker
    No, the bonus has to be paid to the solicitor, so all the people who advised you otherwise were wrong.

    Under the rules of the scheme, the solicitor has to declare that the bonus money was contributed to the purchase value of the property, but (anecdotally) some are prepared for it to be fed into the overall solicitor's completion bill that covers their fees, etc, as well as the property deposit.

    If yours is able and willing to do that (seems unlikely after that email) then that would give you a bit more flexibility, but if not, then you can only use it to add to the deposit and correspondingly reduce the value of the mortgage, i.e. only draw down 93% (or whatever), rather than the full 95%.
    • masonic
    • By masonic 8th Aug 18, 8:24 PM
    • 9,662 Posts
    • 6,862 Thanks
    masonic
    I have been told by many people that once we pay our exchange deposit and apply for our government bonus, this bonus can then be put into our bank accounts, to buy house things (furniture etc).
    Originally posted by Jampa9
    I am quite frankly amazed by this. Pretty much everything I've ever read says the exact opposite: the official information, all media coverage. the MSE guide, banks offering HTB ISAs etc etc. Is it possible the people you've been talking to about this just don't like you very much?
    • Jampa9
    • By Jampa9 8th Aug 18, 11:10 PM
    • 4 Posts
    • 0 Thanks
    Jampa9
    Thanks for that useless reply.
    • masonic
    • By masonic 9th Aug 18, 6:57 AM
    • 9,662 Posts
    • 6,862 Thanks
    masonic
    Thanks for that useless reply.
    Originally posted by Jampa9
    You're welcome.
    • Alexland
    • By Alexland 9th Aug 18, 8:37 AM
    • 2,949 Posts
    • 2,304 Thanks
    Alexland
    We are now panicking because we need this money to furnish our house (£1,150).
    Originally posted by Jampa9
    Ebay - filter on auctions within 10 miles, sort by lowest price and get some stuff for 99p.

    My wife's 99p panasonic microwave lasted us 10 years.


    Alex.
    • Jampa9
    • By Jampa9 9th Aug 18, 2:10 PM
    • 4 Posts
    • 0 Thanks
    Jampa9
    Hi everyone,

    So this is my scenario.

    Me and my partner have had an off accepted on a house, mortgage offer accepted, 5% deposit, etc.

    We both have H2B ISA's. I have been told by many people that once we pay our exchange deposit and apply for our government bonus, this bonus can then be put into our bank accounts, to buy house things (furniture etc).

    I have just had an email from our solicitors asking for our ISA info that said "Please note that the bonus can only be used for the payment of the purchase price - not as either part of the deposit or refunded to you after completion".

    We are now panicking because we need this money to furnish our house (£1,150). I rang my mortgage broker and he said that he didn't think it has to be used towards the house and could go into our accounts, and that he's done hundreds before.

    After reading loads and receiving that email I am now sure that the bonus needs to go towards the house. But if it can't go towards our exchange deposit (5%) and our lender is loaning us 95% then where is this money going? Our mortgage broker knew we both had ISA's and never factored in the bonus' to the mortgage offer and said he never has done before either.

    I am speaking to my solicitors tomorrow (hopefully, they are useless) but I wondered if anyone has been in this situation before.

    Can the bonus be transferred into our current accounts after exchanging contracts?

    Thanks in advance.

    Jamie
    Originally posted by Jampa9

    Hi everyone,


    All sorted!


    So, me and my partner will be due back a £1150 bonus from our ISA's.


    I rang my lawyer today and she told me that when we exchange contracts I won't actually be putting down 5% (£7250), I'll put down 4.2% (£6100) then when we complete we will use our £1150 bonus and the 95% loan from the bank, meaning the bonus gets used for the purchase price and not the deposit.
    This still sounds strange as TECHNICALLY you are using it as part of your deposit, but I guess this is a loophole. I just didn't think I could give less than 5%. But apparently I can. SO although I won't be getting the bonus back, I won't have to put as much towards my deposit, saving me the money


    Hopefully this helps someone else. Thanks.


    Jamie
    • eskbanker
    • By eskbanker 9th Aug 18, 2:44 PM
    • 7,821 Posts
    • 8,638 Thanks
    eskbanker
    Hi everyone,


    All sorted!


    So, me and my partner will be due back a £1150 bonus from our ISA's.


    I rang my lawyer today and she told me that when we exchange contracts I won't actually be putting down 5% (£7250), I'll put down 4.2% (£6100) then when we complete we will use our £1150 bonus and the 95% loan from the bank, meaning the bonus gets used for the purchase price and not the deposit.
    This still sounds strange as TECHNICALLY you are using it as part of your deposit, but I guess this is a loophole. I just didn't think I could give less than 5%. But apparently I can. SO although I won't be getting the bonus back, I won't have to put as much towards my deposit, saving me the money


    Hopefully this helps someone else. Thanks.


    Jamie
    Originally posted by Jampa9
    This comes down to the ambiguity of the word 'deposit', which causes so much confusion to first time buyers and led to the explanatory info at https://www.moneysavingexpert.com/savings/help-to-buy-ISA/#exchange

    This clarifies that the HTB ISA bonus can't be used towards the exchange deposit (i.e. the advance downpayment at exchange) but can be used towards the mortgage deposit (i.e. the total amount of equity not being provided by the mortgage lender) at completion.
    • bowlhead99
    • By bowlhead99 9th Aug 18, 3:02 PM
    • 8,157 Posts
    • 14,900 Thanks
    bowlhead99
    Hi everyone,


    All sorted!


    So, me and my partner will be due back a £1150 bonus from our ISA's.


    I rang my lawyer today and she told me that when we exchange contracts I won't actually be putting down 5% (£7250), I'll put down 4.2% (£6100) then when we complete we will use our £1150 bonus and the 95% loan from the bank, meaning the bonus gets used for the purchase price and not the deposit.
    This still sounds strange as TECHNICALLY you are using it as part of your deposit, but I guess this is a loophole. I just didn't think I could give less than 5%. But apparently I can.
    Originally posted by Jampa9
    It's not really a loophole.

    When the rules talk about not being able to use it for your 'deposit' they mean you can't use it for the deposit that you have to give the seller at exchange of contracts. Because at that point you are not buying a property, you are just committing to buy a property subject to the completion terms which won't happen until later. The HTB bonus can only be used for paying for the property on a successful completion.

    In this case, the seller decided they were happy to accept a low deposit at the time of exchange, to help you out. So they took 4% up front at exchange and 96% at completion, and you funded the 96% with a 95% mortgage and a 1% HTB bonus.

    When the seller agrees to accept a small deposit at the time of exchange (4% instead of 5% or 10%) he is taking a risk that you might fail to complete, and not actually go through with the purchase, leaving him high and dry without much cash in his bank, and needing to sue you for his costs and the problems you cause him. Sometimes, sellers can be in the mood to take a gamble and let you get away with a relatively tiny exchange deposit to help you out. So, you got away with it and he still got paid the 100% in the end, just getting his money later than he was planning

    Hopefully this helps someone else. Thanks
    Jamie
    If anyone else was looking to rely on being able to do what you did, they would be well advised to agree it with the seller very early on. For example if you were giving them £12.5k deposit and they were part of a chain and needed to give £25k to the person they were buying from, exchanging contracts on the same day, and then you said you could only made a deposit of £10k after all, they may not have the luxury of being able to say, ok, just give me a lower deposit and we'll exchange anyway. Because the next person in the chain that *they* are buying from, might not budge on the deposit they want to receive, and your seller in the middle doesn't want to take the difference out of his own pocket and have a cashflow problem and bigger risk.

    The industry standard deposit at exchange is 10%. If you're buying with a 95% mortgage you are probably on the small end of the scale in terms of transaction size and deposit size so a seller may be able to afford to let you do just a 5% deposit instead of 10%. But getting the exchange deposit down further - to 4% because you screwed up the HTB ISA mechanics - is not something anyone should be banking on.
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