Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

    • Nick92
    • By Nick92 15th Sep 18, 9:27 AM
    • 1Posts
    • 0Thanks
    Help to Buy ISA Government Bonus confusion
    • #1
    • 15th Sep 18, 9:27 AM
    Help to Buy ISA Government Bonus confusion 15th Sep 18 at 9:27 AM

    Me and my wife are about to exchange contracts and therefore will soon need to close our H2B ISA’s and apply for the government bonus.

    Property value: 235,000
    Money saved for deposit: 50,000 (21%)

    I don’t understand where the government bonus is added to? Apparently the government bonus contributes towards your overall deposit (sometimes referred to as the ‘mortgage deposit’??). What’s the difference between a mortgage deposit and an exchange deposit?

    Very confusing so any help will be much appreciated! Thanks
Page 1
    • da_rule
    • By da_rule 15th Sep 18, 10:19 AM
    • 2,750 Posts
    • 2,423 Thanks
    • #2
    • 15th Sep 18, 10:19 AM
    • #2
    • 15th Sep 18, 10:19 AM
    Exchange deposit is the amount you pay on exchange of contracts (usually 10%).

    Mortgage deposit is the difference between the purchase price and the mortgage amount. Where there isn't a H2B ISA involved this is usually the same as the exchange deposit however it can be different.

    When you worked out how much you needed to borrow you would have deducted the H2B ISA balance, the bonus and any other funds you planned on using from the purchase price and what was left would be the amount you needed to borrow.

    On completion, your solicitor will send the mortgage funds, plus any additional funds, which, when added to the contract deposit amount will total the purchase price.
    • Impatient Coconut
    • By Impatient Coconut 18th Sep 18, 8:54 AM
    • 53 Posts
    • 41 Thanks
    Impatient Coconut
    • #3
    • 18th Sep 18, 8:54 AM
    • #3
    • 18th Sep 18, 8:54 AM
    Its taken off the overall amount owed on your mortgage.
    Apparently i'm an adult ...
    • Squirtle17
    • By Squirtle17 18th Sep 18, 9:03 AM
    • 14 Posts
    • 13 Thanks
    • #4
    • 18th Sep 18, 9:03 AM
    • #4
    • 18th Sep 18, 9:03 AM
    In our case, as our exchange deposit was the same as our mortgage deposit (10%), our solicitor has told us that any extra funds (meaning our help to buy bonus) will be returned to us on completion.

    Ask your solicitor, they should be able to advise you.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

282Posts Today

3,369Users online

Martin's Twitter
  • RT @Dora_Haf: @MartinSLewis So many people on here saying they're great until you get your PROPER job. What if Your proper job Is ON zero?

  • RT @hslt88: @MartinSLewis I?m a trustee for a youth charity. We only have a limited pool of funds for flexible youth workers for holiday sc?

  • RT @Dan_i_elle_88: @MartinSLewis Loved working zero hour agency care work. Never out of work and I loved having the flexibility! Only left?

  • Follow Martin