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    • Nick92
    • By Nick92 15th Sep 18, 8:27 AM
    • 1Posts
    • 0Thanks
    Help to Buy ISA Government Bonus confusion
    • #1
    • 15th Sep 18, 8:27 AM
    Help to Buy ISA Government Bonus confusion 15th Sep 18 at 8:27 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, 9:19 AM
    • 3,135 Posts
    • 2,830 Thanks
    • #2
    • 15th Sep 18, 9:19 AM
    • #2
    • 15th Sep 18, 9:19 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, 7:54 AM
    • 69 Posts
    • 52 Thanks
    Impatient Coconut
    • #3
    • 18th Sep 18, 7:54 AM
    • #3
    • 18th Sep 18, 7:54 AM
    Its taken off the overall amount owed on your mortgage.
    Apparently i'm an adult ...
    • Squirtle17
    • By Squirtle17 18th Sep 18, 8:03 AM
    • 33 Posts
    • 26 Thanks
    • #4
    • 18th Sep 18, 8:03 AM
    • #4
    • 18th Sep 18, 8:03 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.
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