Help to buy isa - any downsides?

UnworthyBean · 7 Jan 2019 at 16:31

I'm hopefully going to be in the position to buy a house around June this year, or atleast start searching. Have been saving for a while but only really decided to use those savings for a house.

Assuming I shove the maximum in over the 6 months, that's £2400 plus the 25% bonus of £600.

Is it as simple as that, free £600 assuming I'm using it as the deposit for a first house? Obviously I'd be putting extra in for the deposit.

Skillmister · 7 Jan 2019 at 16:55

No downsides, its amazing and i'm always gobsmacked when people don't use it especially considering you can open it and deposit enough to get the bonus in the time the conveyancing process takes.

PiKe · 7 Jan 2019 at 16:57

The only downside is that you cannot use it to buy a house over the value of £250k in England (London is £450k).

With a LISA, you get 25% bonus on deposits of £4000 (so a free £1000) so maybe look at that instead? It must be used for a house or pension though or you lose 25% when you take it out, which equates to about 6.25% loss.

UnworthyBean · 7 Jan 2019 at 18:23

Skillmister said:
No downsides, its amazing and i'm always gobsmacked when people don't use it especially considering you can open it and deposit enough to get the bonus in the time the conveyancing process takes.

I only wish I'd have made my mind up earlier. Could have had a sizeable deposit sorted.

PiKe said:
The only downside is that you cannot use it to buy a house over the value of £250k in England (London is £450k).

With a LISA, you get 25% bonus on deposits of £4000 (so a free £1000) so maybe look at that instead? It must be used for a house or pension though or you lose 25% when you take it out, which equates to about 6.25% loss.

I'm in the North East so houses are closer to £25 than £250k

Lisa seems good but I'd have to wait 12 months for the bonuses?

PiKe · 7 Jan 2019 at 18:24

UnworthyBean said:
I only wish I'd have made my mind up earlier. Could have had a sizeable deposit sorted.

I'm in the North East so houses are closer to £25 than £250k

Lisa seems good but I'd have to wait 12 months for the bonuses?

Well 12 months before you can actually use it towards the purchase of a house, the bonus is paid monthly.

hornetstinger · 7 Jan 2019 at 18:26

If I knew about it earlier would have out in the full amount.

UnworthyBean · 7 Jan 2019 at 20:52

PiKe said:
Well 12 months before you can actually use it towards the purchase of a house, the bonus is paid monthly.

Ideally looking to buy before 12 months but might actually hold out depending on numbers. Not a massive rush.

PiKe · 7 Jan 2019 at 20:55

UnworthyBean said:
Ideally looking to buy before 12 months but might actually hold out depending on numbers. Not a massive rush.

You can transfer a htb into a Lisa, not sure how that works in terms of bonus though.

Rotty · 7 Jan 2019 at 22:14

I really object to these things, taxpayers money should not be for stuff like this and it only inflates the market

of course I don't blame anyone for taking advantage

Psycho Sonny · 9 Jan 2019 at 15:14

Rotty said:
I really object to these things, taxpayers money should not be for stuff like this and it only inflates the market

of course I don't blame anyone for taking advantage

the bonus is pitiful and limited.

i doubt it's doing anything to the market tbh. spending £200K on a house and getting £600 off isn't pushing prices up.

Rotty · 9 Jan 2019 at 16:54

Still wrong to be giving taxpayers money away like this

COYS · 9 Jan 2019 at 20:04

UnworthyBean said:
Ideally looking to buy before 12 months but might actually hold out depending on numbers. Not a massive rush.

FYI, you only have until 30 November to open one, but after that you can keep saving until 2029.

Jonnybmac · 9 Jan 2019 at 20:08

See im looking to buy a house with a current house owner. Im told help to buy means you get locked into owing two people money rarher than one, and there's a clause to it all. It isn't actually free money is it?

Skillmister · 9 Jan 2019 at 21:27

Jonnybmac said:
See im looking to buy a house with a current house owner. Im told help to buy means you get locked into owing two people money rarher than one, and there's a clause to it all. It isn't actually free money is it?

Help to Buy =/= Help to Buy ISA

Help to Buy is a 2nd mortgage. Help to Buy ISA is effectively a savings account with 25% interest

Hyburnate · 9 Jan 2019 at 21:36

Rotty said:
Still wrong to be giving taxpayers money away like this

Do you much prefer subsidising Jimmy down the road getting a degree in Music? It'll come in so useful when he leaves uni to pursue a career at a supermarket.

To be honest, house prices are just going to reach a point where nobody can afford them and the market will crash.

agw_01 · 9 Jan 2019 at 21:40

The HTB bonus can't go towards the deposit but can be a great help towards other fees. I accrued a £1000 bonus which covered my solicitor fees.

Rotty · 9 Jan 2019 at 22:31

Hyburnate said:
Do you much prefer subsidising Jimmy down the road getting a degree in Music?.

nope Jimmy can sod off too

Psycho Sonny · 10 Jan 2019 at 13:43

Rotty said:
Still wrong to be giving taxpayers money away like this

in order to buy a home you need to be a taxpayer or have paid tax at some point - so you think it's wrong taxpayers are receiving their own money back?

it's not as if they are just giving it away to anybody it's going to working people looking to buy their first home.

Rotty · 10 Jan 2019 at 18:03

Yes it is totally wrong

Doobedoo · 10 Jan 2019 at 19:06

Psycho Sonny said:
in order to buy a home you need to be a taxpayer or have paid tax at some point - so you think it's wrong taxpayers are receiving their own money back?

it's not as if they are just giving it away to anybody it's going to working people looking to buy their first home.

It’s better than mp’s using it for 3rd or 4th homes or allowing apple ect to avoid paying corporation tax. My conscience is completely clear.