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  • FIRST POST
    • Former MSE Sam M
    • By Former MSE Sam M 1st Dec 15, 2:23 PM
    • 238Posts
    • 159Thanks
    Former MSE Sam M
    Help to Buy ISA guide
    • #1
    • 1st Dec 15, 2:23 PM
    Help to Buy ISA guide 1st Dec 15 at 2:23 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 89
    • Rich2808
    • By Rich2808 4th Jun 19, 6:38 PM
    • 856 Posts
    • 691 Thanks
    Rich2808
    "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..."

    https://www.helptobuy.gov.uk/help-to-buy-isa/faq/
    Originally posted by masonic
    The guidance is a bit odd - as it says anyone over 16 when it should say anyone 16 and over?

    Just to add to the confusion over this product as you need to be 16 (not 17) to open one!


    "Who can open a Help to Buy: ISA?
    Anyone who is over 16 and a first time buyer."
    • eskbanker
    • By eskbanker 4th Jun 19, 6:57 PM
    • 11,339 Posts
    • 14,030 Thanks
    eskbanker
    The guidance is a bit odd - as it says anyone over 16 when it should say anyone 16 and over?

    Just to add to the confusion over this product as you need to be 16 (not 17) to open one!


    "Who can open a Help to Buy: ISA?
    Anyone who is over 16 and a first time buyer."
    Originally posted by Rich2808
    Fortunately the definitive source of information, i.e. the scheme rules, has a more accurate definition, namely:
    4.7 Eligible Customer

    (A) A person shall only be permitted to open a Help to Buy: ISA if they are an Eligible Customer. A person is an “Eligible Customer” if they open a Help to Buy: ISA with an Eligible ISA Manager on or before 30 November 2019 and they:

    (i) are 16 years of age or over; [...]
    Obviously the actual rules and the FAQ, both being government-published documents, should align but it seems clear to me that the former is more reliable in the event of any contradictions. The inclusion of 30 November is also clear here, although as it's a Saturday it may be a busy day in branches for those not opening online so plan ahead!
    • masonic
    • By masonic 4th Jun 19, 7:09 PM
    • 12,335 Posts
    • 9,941 Thanks
    masonic
    The guidance is a bit odd - as it says anyone over 16 when it should say anyone 16 and over?

    Just to add to the confusion over this product as you need to be 16 (not 17) to open one!


    "Who can open a Help to Buy: ISA?
    Anyone who is over 16 and a first time buyer."
    Originally posted by Rich2808
    It could have been clearer, although the confusion only arises if you treat age as a discrete property. In my view, time is continuous and therefore so is age. We simply round down to a whole number for convenience (or not if we happen to be a doting mother referring to her child). I doubt any application form requires the applicant to declare their time of birth, so leaving it a few seconds after midnight on your 16th birthday should give ample leeway.
    Last edited by masonic; 04-06-2019 at 7:12 PM.
    • Thebear
    • By Thebear 4th Jun 19, 10:51 PM
    • 4 Posts
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    Thebear
    Am I a first time buyer?
    I maybe being really thick with this question...

    I have had a mortgage, paid it off and will be transferring ownership of the property to my ex wife shortly.

    Does this mean I am a ‘first time buyer’ again?

    I have rented for 10 years but would like to get another mortgage and buy again.

    Sorry if this question is really stupid.
    • eskbanker
    • By eskbanker 5th Jun 19, 12:00 AM
    • 11,339 Posts
    • 14,030 Thanks
    eskbanker
    I maybe being really thick with this question...

    I have had a mortgage, paid it off and will be transferring ownership of the property to my ex wife shortly.

    Does this mean I am a ‘first time buyer’ again?

    I have rented for 10 years but would like to get another mortgage and buy again.

    Sorry if this question is really stupid.
    Originally posted by Thebear
    No, if you've owned a property before then you're at least a second time buyer next time round and therefore ineligible for a HTB ISA....
    • Rich2808
    • By Rich2808 5th Jun 19, 4:15 AM
    • 856 Posts
    • 691 Thanks
    Rich2808
    No, if you've owned a property before then you're at least a second time buyer next time round and therefore ineligible for a HTB ISA....
    Originally posted by eskbanker
    Agreed - and you are not eligible for the first time buyer stamp duty reduction either or drawing down a lifetime isa before 60 to fund a house purchase without penalty..

    However you may be eligible for mortgage incentives for first timer buyers. For example Nationwide give £500 cashback to first time buyers - and their definition means anyone who hasn't had a mortgage in the last 3 years (or owned a home in that time). Santander offer £1,000 cashback on some products to FTBs. Other lenders may have similar schemes/cashback offers.
    Last edited by Rich2808; 05-06-2019 at 4:18 AM.
    • DanGra96
    • By DanGra96 7th Jun 19, 9:23 AM
    • 1 Posts
    • 0 Thanks
    DanGra96
    Already have ISA - want to get a HTB ISA
    Hi, I am not long out of Uni and hoping to start saving for my own place.
    I have an Instant Cash ISA from Lloyds (who my current account is with) with money already saved up.
    How would I go about get a Help to Buy ISA? I.e. will I be able to transfer the money/some of the money, will I have to close this account and start a new HTB one?

    Any advice would be appreciated.
    Last edited by DanGra96; 07-06-2019 at 9:24 AM. Reason: Added title
    • eskbanker
    • By eskbanker 7th Jun 19, 9:41 AM
    • 11,339 Posts
    • 14,030 Thanks
    eskbanker
    Hi, I am not long out of Uni and hoping to start saving for my own place.
    I have an Instant Cash ISA from Lloyds (who my current account is with) with money already saved up.
    How would I go about get a Help to Buy ISA? I.e. will I be able to transfer the money/some of the money, will I have to close this account and start a new HTB one?

    Any advice would be appreciated.
    Originally posted by DanGra96
    As explained in the guide that this thread is about, HTB ISA contributions are capped to a one-off £1,000 upfront and then no more than £200/month thereafter, so you can effectively shift up to £1,200 from elsewhere in the first month.

    Be aware that HTB ISA is a cash ISA so ISA scheme rules mean that you can't pay new money into both your existing ISA and the HTB in the same tax year, so if you've saved into your current one since 6 April then this will complicate matters.

    You might wish to consider a Lifetime ISA as an alternative, as it offers the same 25% bonus for a first-time property purchase but has a higher annual contribution limit of £4K (which can be paid in in one go if that suits you) and a higher property value cap of £450K nationwide. It's also a different type of ISA, enabling you to fund your existing one in parallel if you like....
    • claire21
    • By claire21 7th Jun 19, 9:44 AM
    • 32,503 Posts
    • 1,021,014 Thanks
    claire21
    When do you have to buy a property by ? Thinking about this for my 16 year old but is there a cut off date to buy as it would be many years until she does. Thanks
    • eskbanker
    • By eskbanker 7th Jun 19, 9:50 AM
    • 11,339 Posts
    • 14,030 Thanks
    eskbanker
    When do you have to buy a property by ? Thinking about this for my 16 year old but is there a cut off date to buy as it would be many years until she does. Thanks
    Originally posted by claire21
    As explained in the guide that this thread is about:
    You can open one anytime until 30 November 2019 and you'll be able to save in it until 30 November 2029. The bonus will be added as long as you use it for a deposit by 1 December 2030.
    • Chris98765
    • By Chris98765 11th Jun 19, 10:11 PM
    • 2 Posts
    • 0 Thanks
    Chris98765
    Mortgage Providers Loan to Value Limits
    I don’t think there is a limit on the loan to value on the mortgage when using a Help to Buy (H2B) ISA from what I can see on the official govt website however Nationwide appear to only allow you to use a H2B ISA for mortgages with a loan to value (LTV) of 85% or more. This is going by their available mortgages on their mortgage calculator on their website.

    Has anyone used an ISA for less than a 85% LTV mortgage with Nationwide or another mortgage provider?

    Thanks
    Chris
    • george4064
    • By george4064 12th Jun 19, 8:15 AM
    • 1,306 Posts
    • 1,300 Thanks
    george4064
    I don’t think there is a limit on the loan to value on the mortgage when using a Help to Buy (H2B) ISA from what I can see on the official govt website however Nationwide appear to only allow you to use a H2B ISA for mortgages with a loan to value (LTV) of 85% or more. This is going by their available mortgages on their mortgage calculator on their website.

    Has anyone used an ISA for less than a 85% LTV mortgage with Nationwide or another mortgage provider?

    Thanks
    Chris
    Originally posted by Chris98765
    It must just be the case that Nationwide will only you offer a max 85% LTV, irrespective of you using the HTB ISA or not.

    If you're talking about the HTB ISA bonus and you did really mean a lower LTV (i.e. 70% or 50%), then yes I have. I don't think there are any restrictions to use the HTB ISA other than you must be a first time buyer and the total property price is no more than £450k in London/£250k outside of London.

    If in doubt, speak with your solicitor.
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    • releasethehounds
    • By releasethehounds 12th Jun 19, 9:27 AM
    • 3 Posts
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    releasethehounds
    I would like to open a Help to Buy ISA each for my two daughters. One is 20 so no problem but I notice that I have to open the ISAs before 1st November '19 and my younger daughter doesn't reach 16 until December! Is there any way I can still open the Help to Buy ISA for her?
    • eskbanker
    • By eskbanker 12th Jun 19, 9:49 AM
    • 11,339 Posts
    • 14,030 Thanks
    eskbanker
    I would like to open a Help to Buy ISA each for my two daughters. One is 20 so no problem but I notice that I have to open the ISAs before 1st November '19 and my younger daughter doesn't reach 16 until December! Is there any way I can still open the Help to Buy ISA for her?
    Originally posted by releasethehounds
    The deadline is actually 30th November not 1st (see posts #1759 to #1763 above) but that's still not December, so if your younger daughter isn't 16 until after the deadline then she won't qualify for a HTB ISA I'm afraid. She could open a Lifetime ISA once she's 18 but would have to make do with a Junior ISA before that (or less appealing adult ones).

    The elder one can open a HTB ISA if she does so by the deadline, but strictly speaking she needs to do it herself, i.e. you can't do it for her.
    • Chris98765
    • By Chris98765 13th Jun 19, 5:05 PM
    • 2 Posts
    • 0 Thanks
    Chris98765
    Thanks for your reply George. Good to know that you have used the ISA at less than 85% LTV.

    With Nationwide you can view their products online and if you tick that you are using Help to Buy ISA then it doesn’t show mortgages below 85% LTV and asks you to call but if you state above 85% then it does show products so as you said seems to be a Nationwide policy. I will check with the solicitors to be sure. Many thanks.
    • Rich2808
    • By Rich2808 14th Jun 19, 6:52 PM
    • 856 Posts
    • 691 Thanks
    Rich2808
    Thanks for your reply George. Good to know that you have used the ISA at less than 85% LTV.

    With Nationwide you can view their products online and if you tick that you are using Help to Buy ISA then it doesn’t show mortgages below 85% LTV and asks you to call but if you state above 85% then it does show products so as you said seems to be a Nationwide policy. I will check with the solicitors to be sure. Many thanks.
    Originally posted by Chris98765
    Nationwide also operates a save to buy isa - which gives an extra bonus of up to 1,000 pounds I believe if you take out certain types of mortgages with them which have high LTVs. Not sure if that is causing the confusion.

    That is just a Nationwide product and has nothing to do with the help to buy isa.

    Whether you take a 5% or a 95% LTV mortgage you are eligible for the government help to buy isa bonus - and it has nothing to do with the Nationwide as your solicitor claims it if you meet the other criteria. So you can apply for any NW mortgage - if you have a high enough deposit etc - and it will not affect your eligibility for the government bonus. You just need to buy a home with a mortgage.
    • MDMD
    • By MDMD 14th Jun 19, 6:56 PM
    • 417 Posts
    • 335 Thanks
    MDMD
    Nationwide also operates a save to buy isa - which gives an extra bonus of up to 1,000 pounds I believe if you take out certain types of mortgages with them which have high LTVs. Not sure if that is causing the confusion.

    That is just a Nationwide product and has nothing to do with the help to buy isa.

    Whether you take a 5% or a 95% LTV mortgage you are eligible for the government help to buy isa bonus - and it has nothing to do with the Nationwide as your solicitor claims it if you meet the other criteria. So you can apply for any NW mortgage - if you have a high enough deposit etc - and it will not affect your eligibility for the government bonus. You just need to buy a home with a mortgage.
    Originally posted by Rich2808
    You haven’t been able to apply for that account for some time. The issue 3 is a closed product.
    • Rich2808
    • By Rich2808 15th Jun 19, 1:13 AM
    • 856 Posts
    • 691 Thanks
    Rich2808
    You haven’t been able to apply for that account for some time. The issue 3 is a closed product.
    Originally posted by MDMD
    Oh I agree its closed to new investors - but some people still have the account and can draw it down to fund an NW mortgage and get the bonus on top.

    The point I was referencing is that when you search for first time buyer mortgages on the website it asks you to tick a box if you have a Nationwide save to buy isa or help to buy isa. If you tick that it will won't let you search for any mortgages with a loan to value below 85% - but instead asks you to telephone them instead.

    While I can understand why this would be the case for their save to buy isa product bonus - as its limited to high LTV products - this is irrelevant for the help to buy isa product which has frankly nothing to do with applying for a Nationwide.mortgage range but is used to draw down a bonus the FTB claims separately via their solicitor on completion.. So essentially they are discouraging FTBs with larger deposits who have help to buy isas to apply for their products online which is very odd and insisting they call their call centre instead. Perhaps whoever set up the search didn't get the difference between a help to buy isa and their own save to buy isa product?

    This is why the issue has arisen - because the NW have frankly made an error in designing their online mortgage search for FTBs using help to buy isas. who want LTV mortgages below 85%. They should not tick that box!

    https://www.nationwide.co.uk/products/mortgages/first-time-buyers/mortgage-rates
    Last edited by Rich2808; 15-06-2019 at 1:21 AM.
    • NX1977
    • By NX1977 20th Jun 19, 4:43 PM
    • 82 Posts
    • 14 Thanks
    NX1977
    I'm on a joint mortgage following divorce, but and not financially responsible for paying this each month, and the house has been transferred into the other parties name as part of the divorce.

    Does this still make me ineligible for this ISA?
    • eskbanker
    • By eskbanker 20th Jun 19, 5:19 PM
    • 11,339 Posts
    • 14,030 Thanks
    eskbanker
    I'm on a joint mortgage following divorce, but and not financially responsible for paying this each month, and the house has been transferred into the other parties name as part of the divorce.

    Does this still make me ineligible for this ISA?
    Originally posted by NX1977
    The test is more about ownership, as in being named on title deeds, rather than inclusion on a mortgage, but realistically they normally go hand in hand - if you're suggesting that ownership was transferred from joint to sole on divorce then this would mean that as a previous owner you're no longer a first-time buyer and therefore ineligible for a HTB ISA.
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