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  • FIRST POST
    • Georgia Amelia
    • By Georgia Amelia 14th Feb 18, 3:30 PM
    • 1Posts
    • 0Thanks
    Georgia Amelia
    Help to Buy ISA
    • #1
    • 14th Feb 18, 3:30 PM
    Help to Buy ISA 14th Feb 18 at 3:30 PM
    So, I am in the process of purchasing my first property.

    Apparently the Help to Buy Government's contribution of 25% does not go towards the deposit but in fact the mortgage overall. For a start how does that help anyone to buy? Given it doesn't contribute to the deposit, which is the hardest part for us first time buyers!!??

    Anywho, my solicitor has told me to go to a Halifax branch and close my account so I can send them the ISA closing statement so they can obtain the Government's contribution.

    My question is this, by closing my help to buy account on Saturday, where does the money I have saved in the account go for the time being before I have to pay my deposit? given that the account will be closed? May be a stupid question but I have no idea.

    Big thanks,
    Georgia
Page 1
    • whatdoyouthink...
    • By whatdoyouthink... 14th Feb 18, 3:48 PM
    • 36 Posts
    • 16 Thanks
    whatdoyouthink...
    • #2
    • 14th Feb 18, 3:48 PM
    • #2
    • 14th Feb 18, 3:48 PM
    Should just go into your normal current account...or nominated account. When I closed mine with NatWest they asked which account they should transfer the money too.

    Also, my 25% didn't go towards my mortgage, but my deposit...
    • Tiglet2
    • By Tiglet2 14th Feb 18, 4:02 PM
    • 95 Posts
    • 56 Thanks
    Tiglet2
    • #3
    • 14th Feb 18, 4:02 PM
    • #3
    • 14th Feb 18, 4:02 PM
    The savings in your HTB ISA can go towards your deposit, but can be put into any account beforehand.
    The bonus is paid at completion, so can go towards the purchase monies/solicitors fees.
    • alex_163163
    • By alex_163163 14th Feb 18, 9:40 PM
    • 231 Posts
    • 156 Thanks
    alex_163163
    • #4
    • 14th Feb 18, 9:40 PM
    • #4
    • 14th Feb 18, 9:40 PM
    Don!!!8217;t really understand what you mean by the bonus doesn!!!8217;t go towards your deposit? Of course it does.
    The bonus goes towards the 5% / 10% / 15% you are putting down on the property. Ie the part that is not being paid by the mortgage lender. This amount you put down is your mortgage deposit.
    What it can!!!8217;t go towards is the exchange deposit, which is typically 10% of the purchase price that is paid to the vendor at exchange, basically to secure the sale to ensure neither party subsequently pulls out. Where people can become stuck is when the mortgage deposit they are putting down is 10%, and some of that amount is coming from the iSA bonus. They would then, via their solicitors, need to negotiate a slightly lower exchange deposit with the vendors to secure the sale. The bonus would then be available on completion day to make up the full deposit amount.
    • ceb1995
    • By ceb1995 15th Feb 18, 4:21 PM
    • 233 Posts
    • 536 Thanks
    ceb1995
    • #5
    • 15th Feb 18, 4:21 PM
    • #5
    • 15th Feb 18, 4:21 PM
    So, I am in the process of purchasing my first property.

    Apparently the Help to Buy Government's contribution of 25% does not go towards the deposit but in fact the mortgage overall. For a start how does that help anyone to buy? Given it doesn't contribute to the deposit, which is the hardest part for us first time buyers!!??

    Anywho, my solicitor has told me to go to a Halifax branch and close my account so I can send them the ISA closing statement so they can obtain the Government's contribution.

    My question is this, by closing my help to buy account on Saturday, where does the money I have saved in the account go for the time being before I have to pay my deposit? given that the account will be closed? May be a stupid question but I have no idea.

    Big thanks,
    Georgia
    Originally posted by Georgia Amelia
    we're ftbs and just exchanged the other day, the solicitors have negotiated so that the amount at exchange was lower so our help to buy bonus has helped as that has gone towards the deposit. Just pop into branch, they ll give you the closing statement and can transfer it into any account you like.
    Current mortgage balance: 141,197.82
    original end date: 12th march 2058
    End date goal: 12th march 2045
    • heasandford
    • By heasandford 16th Feb 18, 5:26 PM
    • 24 Posts
    • 4 Thanks
    heasandford
    • #6
    • 16th Feb 18, 5:26 PM
    • #6
    • 16th Feb 18, 5:26 PM
    Can I add to this, not sure it's the right place. My daughter is just transferring her Halifax Help-to Buy ISA to her LISA, but the letter she's received says - 'the scheme administrator must receive the claim from your conveyancer within 12 months of the account closing date shown in this letter'

    She isn't going to be buying a house within 12 months, and she isn't closing the account, just transferring it. Have Halifax got it wrong, or is she going to lose the bonus somehow?
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