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  • FIRST POST
    • j3nnavieve
    • By j3nnavieve 14th May 18, 7:51 PM
    • 10Posts
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    j3nnavieve
    HTB no bonus?
    • #1
    • 14th May 18, 7:51 PM
    HTB no bonus? 14th May 18 at 7:51 PM
    Hi

    I am in the process of buying a new house through the HTB scheme. My solicitor has told me I now need to close my HTB account to get the closing statement which I have done.
    However they have now said this:
    "I have looked in to the Help to Buy ISA scheme, and unfortunately you cannot use this bonus for the exchange deposit, it can only be used for completion.
    In that regard, you will either have to not use the bonus, or find additional funds to make up the deposit."

    I have already secured a mortgage through my mortgage broker and they said my bonus would be part of my deposit.

    I am super confused, can someone please explain to me like I am 5. I do not have my bonus money to add to my deposit so do I exchange contracts with the lower deposit and then the bonus gets added at completion?
Page 1
    • sully1311
    • By sully1311 14th May 18, 8:55 PM
    • 53 Posts
    • 12 Thanks
    sully1311
    • #2
    • 14th May 18, 8:55 PM
    • #2
    • 14th May 18, 8:55 PM
    Help to Buy ISA Bonus is paid at the completion (ie your mortgage deposit) and cannot be used for your exchange deposit.
    • AirlieBird
    • By AirlieBird 14th May 18, 9:36 PM
    • 1,007 Posts
    • 812 Thanks
    AirlieBird
    • #3
    • 14th May 18, 9:36 PM
    • #3
    • 14th May 18, 9:36 PM
    https://www.helptobuy.gov.uk/help-to-buy-isa/faq/

    When is the Help to Buy: ISA government bonus paid?
    The government bonus is paid once it is certain the transaction will go ahead. This means that your solicitor or conveyancer will claim the bonus between exchange and completion. The government bonus contributes towards your overall deposit (sometimes referred to as the ‘mortgage deposit’) and therefore increases your savings for your first home.

    If you are in the situation where you need the government bonus to make up the deposit on exchange of contracts then your solicitor or conveyancer will be able to advise you on your options. In this instance your solicitor or conveyancer should be able to agree a smaller deposit at exchange with the seller; with the promise of the government bonus to follow as part of the overall deposit.
    Did you really mean to put loose?
    Lose: no longer possess, not to retain, unable to find
    Loose: not firmly or tightly fixed in place
    • eskbanker
    • By eskbanker 14th May 18, 11:42 PM
    • 7,088 Posts
    • 7,507 Thanks
    eskbanker
    • #4
    • 14th May 18, 11:42 PM
    • #4
    • 14th May 18, 11:42 PM
    I am super confused, can someone please explain to me like I am 5.
    Originally posted by j3nnavieve
    Sounds like you're the ideal candidate for the MSE article at https://www.moneysavingexpert.com/savings/help-to-buy-ISA#exchange which, as with the above posts, clarifies the different meanings of the ambiguous word 'deposit' in the context of buying a property.
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