Help to buy ISA

[VincentHanna]

I have a first time buyers ISA, my girlfriend also has one. The bonus isn't bad though the fact you have to save for 5 years to get the maximum is abit naff.

Ultimately though, I'm hoping they revise the bands upwards or do it on a more regional basis, as 250k where we are (Chelmsford) gets us f'all.

I'm 33 and renting a 2 bedroom house with a garden. We have a dog, we want kids very soon.

I'm not going back to living in a pokey flat.

 

[Skeeter]

So for people who are looking to purchase end of this year or beginning of next is there any point in putting a deposit in this plus 200 just for the 4% and will I get the bonus? Its a bit of a pain as I would rather have my savings in one place earning.

Iv got around 700 per month to save

For the Halifax one at least, interest is paid annually so if you buy a house within 12 months you won't get any of the 4% interest.

 

[DJMK4]

Maybe before, maybe just after hard to tell when does it start? April to april or just from the point you begin interest paid end of year Dec?

 

[Skeeter]

"Account anniversary", so the date you opened the account each year.

 

[DJMK4]

Id have to close the one i have not paid into and open a new one. So jan/ Feb next year to get a 850 ish bonus and 4% on savings

So your looking at just below 1k (bonus and interest) maybe from a year

Also seems speaking with Lloyd's this may not work if you have paid in to a cash isa this tax year, because I use one isa to transfer in/ out money but not save

Argh this is all a headache, surely they know people are likely to have an existing isa that they have paid in to?

 

[The_Abyss]

For the Halifax one at least, interest is paid annually so if you buy a house within 12 months you won't get any of the 4% interest.

This is incorrect. It is calculated daily and paid annually.

 

[Abraxaz1]

Quick question if you go with thus scheme do you have to buy a new build?

 

[The_Abyss]

Quick question if you go with thus scheme do you have to buy a new build?

No.

 

[[TW]Fox]

Also seems speaking with Lloyd's this may not work if you have paid in to a cash isa this tax year, because I use one isa to transfer in/ out money but not save

There is no seems about it - if you've paid into an ISA this year, you cannot have another one.

Why would you use an ISA as an instant access account like that? Thats madness, the rates on ISA's are so pathetic at the moment (Halifax HTB excepted) that the only real benefit of an ISA is future tax protection. If you wanted to dip in and out of your money you'd have earned more interest with other more suitable products!

 

[DJMK4]

Can I not just close them off then ? I don't know i was meaning to switch it to a new current but didn't think something like this would happen!

So basically its a no go for me? Tidy, wonder who else has never had money going into an isa this tax year, surely that's where most people save rendering them useless too

 

[The_Abyss]

That's one of the most fundamental points about ISAs - there's no real excuse for missing it and using one in that way. Fortunately you get a whole new allowance on 6 April.

 

[[TW]Fox]

Can I not just close them off then ? I don't know i was meaning to switch it to a new current but didn't think something like this would happen!

It'll make no difference - you'll need to wait for the new tax year unfortunately.

Unless you've only paid £1200 or less into your ISA, then you can open a help to buy and do a transfer in. If you've put more than £1200 in though you are unfortunately out of luck.

So basically its a no go for me? Tidy, wonder who else has never had money going into an isa this tax year, surely that's where most people save rendering them useless too

Lots of people have stopped bothering, either because they were waiting for Help to Buy ISA (Announced in April last year!) or because they realise the main benefit of an ISA is fairly irrelevant when the interest rate is lower than you'd get in some current accounts!

 

[FoxEye]

House prices are rising at 7% a year, but my salary certainly isn't!

You do wonder how long this can go on for. It's the same down here.

The Government yet again meddling with a "free market" to keep the bubble (and happy voters) going imo.
The housing market needs a serious downward correction. It'll all end in tears.

It'll end in tears, but who for? Probably the tears will be from the 85% of people who can no longer afford to buy, and the 15% will own all the houses in the country.

It'll become a landlord's paradise. And we still won't have adequate protection for tenants.

 

[DJMK4]

Pretty sure the money transferred would have got me over that. Damn

Oh well.

Is it worth just using this Halifax isa for the 4% interest then? Or wait until April?

Its getting to the pointless doing it route now, hardly a help to buy scheme unless you want to wait a long time

 

[[TW]Fox]

Is it worth just using this Halifax isa for the 4% interest then? Or wait until April?

You can only fill it at 200 quid a month so it's almost not worth the bother if you only want it for the interest.

You have no choice anyway if you've paid in over £1200 to another account this year, you HAVE to wait until April.

 

[DJMK4]

Hmm yeh I'm going to close any stale ISA's I have

Ah well

 

[Ekim]

Wife and I opened a HTB ISA account each in December. Currently in the process of buying a house, we probably won't be able to get too much in to the account (£1400 each currently) by the time we actually finish the process. However seemed like a bit of a no-brainer to be honest. We should get a bonus of £1,000 in total.

 

[[TW]Fox]

Wife and I opened a HTB ISA account each in December. Currently in the process of buying a house, we probably won't be able to get too much in to the account (£1400 each currently) by the time we actually finish the process. However seemed like a bit of a no-brainer to be honest. We should get a bonus of £1,000 in total.

You only get the bonus if you have a minimum of £1600 in there btw.

 

[Ekim]

You only get the bonus if you have a minimum of £1600 in there btw.

Yep, we'll be at £1600 on the 1st of February. £400 bonus minimum each. Our vendors haven't found anywhere to move to yet so there is no way we'll be moving in before then.

At the moment it works well for us. Each month extra the vendor takes to find somewhere we end up with an additional £100 worth of bonus.

 

[DJMK4]

Asking around to see if there is anything better that would suit my situation.