Help to buy ISA

Diddums · 8 Jan 2016 at 18:46

Evenink you naughty rascals,

We've been squirreling away the cash found down the back of the sofa for a while to buy a palace for ourselves and we're looking at this help to buy ISA lark. The max that David Cameron will chip in is £3k apparently, but what is there a way my wife and I can open one each and buy a house together, or will it be a joint thing, ie. £3k cap for both of us?

Any advices or tipses are appreciated as always

Steve2000 · 8 Jan 2016 at 18:47

You are allowed one each and can combine them, so your allowance will be £6k, providing you are both first-time buyers.

I believe Halifax are doing one (others may be) that you can load with £1k immediately, so 5 months worth really.

Diddums · 8 Jan 2016 at 18:48

H'actually, I probably should've done some homework first as all the answers are here::

http://www.moneysavingexpert.com/savings/help-to-buy-ISA

Nevertheless, I'm still open to suggestions or tips or tricks in general when it comes to buying a house, and I'm sure others will appreciate it too

Jokester · 8 Jan 2016 at 18:48

https://www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work/

One ISA each and the government will pay into each one, so you can get £6k in total.

balky12 · 8 Jan 2016 at 19:01

One thing I would add, it's only up to £400k inside London and £250k outside London. Going by your location. So you might struggle to qualify if you are after a decent size house.

opstrat · 8 Jan 2016 at 19:04

balky12 said:
One thing I would add, it's only up to £400k inside London and £250k outside London. Going by your location. So you might struggle to qualify if you are after a decent size house.

It's just a savings account scheme. I think your referring to a different scheme

Trucamo · 8 Jan 2016 at 19:05

I'm looking at purchasing a house in the near future however I'm going to open one of these, if I buy within 3 months I haven't lost anything, however if it takes longer I get an extra 25% payout, seems like a no-brainer to me.

opstrat said:
It's just a savings account scheme. I think your referring to a different scheme

The extra 25% will only be paid out on properties within those thresholds, above that and you won't get your payout, just your money+interest.

Diddums · 8 Jan 2016 at 19:06

balky12 said:
One thing I would add, it's only up to £400k inside London and £250k outside London. Going by your location. So you might struggle to qualify if you are after a decent size house.

True, but at this point we're just wanting to own our own property as at this point we're paying obscene amounts every month into someone else's pocket. We can always sell the place and move in to something bigger later on.

Janesy B · 8 Jan 2016 at 19:07

opstrat said:
It's just a savings account scheme. I think your referring to a different scheme

You are wrong, the help to buy ISA bonus can only be claimed if the home is worth up to £250k or £450k in London.

tom113 · 8 Jan 2016 at 19:20

Is it definitely house value of 250k or mortgage of 250k?

Boycey0211 · 8 Jan 2016 at 19:20

tom113 said:
Is it definitely house value of 250k or mortgage of 250k?

House value by the look of it

[TW]Fox · 8 Jan 2016 at 19:21

You can have one each.

It's a totally garbage token gesture - the saving limit of £200 a month is pathetic and basically ruins it as a concept, but you might as well have one anyway.

What is it they intend you to buy with savings of just £200 a month anyway, a new sofa?

Diddums · 8 Jan 2016 at 19:24

It's still £6k between the two of us, I'll never turn down free money. We've already got other ways of saving every month.

beh · 8 Jan 2016 at 19:32

Free money and 4% interest (Halifax). Absolutely no reason not to.

balky12 · 8 Jan 2016 at 19:51

I was just pointing it out. It doesn't get added on a month by month basis either. You only get the Government portion once you apply for the mortgage on a house where the value is less then £250k outside London and £450k inside London.

To get the maximum £3k you need to be saving 5 years. So if you are like me, living in the South East. £3k over 5 years is nothing compared to how quickly house prices are rising. That's even if you ignore the fact that I can't buy anything for less than £250k around me anyways.

norm · 8 Jan 2016 at 19:59

Any bonus you do get, part of it is lost in conveyance fees, probably looking at minimum charge of £100. Basically Tories ensuring their chums get a backhander from it.

Vanilla · 8 Jan 2016 at 20:35

norm said:
. Basically Tories ensuring their chums get a backhander from it.

I don't get it? Are all solicitors conservatives?

[TW]Fox · 8 Jan 2016 at 20:42

norm said:
Basically Tories ensuring their chums get a backhander from it.

Yes, because the government are personal friends of every solicitor in the country. Honestly, does this OMGZ TEH TORIEZ MATEZZZZZ thing not get boring?

Duke · 8 Jan 2016 at 20:44

norm said:
Any bonus you do get, part of it is lost in conveyance fees, probably looking at minimum charge of £100. Basically Tories ensuring their chums get a backhander from it.

LOL

DJMK4 · 8 Jan 2016 at 20:45

Iv set up a Halifax one although not put anything in yet, need to speak to them,

I have a cash isa with Lloyd's with nothing in, I set it up but never got used, and one with Santander again , I am going to close these probably, this isn't going to cause an issue with this buy to help isa scheme I'm starting with Halifax is it?

Also I set it up last month but not put anything in yet, assuming I can just transfer in and everything does what it needs to do?

Ah so you can only save £200 a month?