Soldato
Just wait until the new tax year, it is far simpler and cleaner. And learn and respect the ISA rules this time 
Help to buy ISA
- Thread starter Diddums
- Start date
Transfers do not count as a new subscription. The idea behind it was to allow savers to keep transferring their balances into their newly subscribed ISA to make a bigger pot.
i.e.
Year ISA Limit Total Balance
1 3,000 3,000
2 3,500 6,500
3 4,000 10,500
After year 3 your pot has 10,500. 6,500 from the previous two years, and 4,000 from the current year.
How much of a deposit do you already have?
Assuming you've ran your salary through an affordability calc to get a rough idea of the max a bank will lend you - the 100k. So a 130-150k house will require you to fund the remaining 30-50k as part of your deposit. (1k a month savings, approx 2.5 - 4 years).
The HtB ISA will likely be of benefit to you, but ensure whatever savings you currently have are in high interest accounts.
Help to Buy equity Scheme. How much do you have deposit now?
You can borrow 100k. With the Help to buy equity scheme with a 5% deposit you get a 20% equity loan from the Government. So in effect you have a 25% deposit.
So 100k will be the 75% mortgage. Meaning you can buy a house worth ~£130k.
So...
Your 5% deposit £6,500
Governments loan £26,000
Mortgage £97,500.
The only thing to be careful of is the £26,000 equity loan is interest free for 5 years only. Smart thing would be to overpay on your mortgage for 5 years, then after that remortgage the house folding in that 20% loan.
Hope that makes sense?
Assuming a 4% mortgage rate over 25 years you would have monthly payments of ~£515.
If for the first 5 years you paid £700 a month you would roughly have paid off £26,000 of the mortgage capital. Now you remortgage for the extra £26,000 the Government lent you and your back to where you began 5 years ago however owning 100% of your house.
No idea of your salary or affordability mind you. But this gives you an idea of how it all can work.
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So even an ISA transfer wouldnt transfer the subscription of how much I had paid in to that account?
IE so I couldnt do a transfer from the Santander ISA (any balance and the subscription amount) in to the Lloyds ISA and combine it with that? and the same with the Lloyds ISA in to the Help to buy ISA?
Even without the Help to buy ISA I have still already breached by paying in to 2 this year
Speaking to Halifax again, they are saying that if I close the Santander ISA and let the HMRC know, this will be ok to do? none of this is tying up, and contradicting each other
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As you don't seem too sure, and it's not clear from what you've said, waiting till April is probably the best bet.
Soldato
You have already broken the rules by paying current year subscriptions into 2 ISAs. The chances are that they will apply no penalty, the penalty would normally be to unwind the tax benefit you should not have received, as you only transferred money in and out you basically gained nothing, assuming you did this quickly and didn't earn lots of interest.
The reporting is a safety net, otherwise you could in theory setup about 20 ISAs and have all your savings tax free, so each financial services firm will provide the status on ISA accounts (remember can be S&S also so its not just banks)
Going back to your original situation, as you still have one of the accounts open that you have paid into, then by paying more in, and then TRANSFERING the ISA to a new provider (Halifax ISA) you will not have made the situation any worse. The old one will be closed by transfer, the new provider will confirm opened with transfer balance.
A few years ago I made the mistake of transferring money into an ISA. I had already made my full year subscription, I rang them and when a specialist rang back I confirmed I had immediately removed so no interest would be payable, they said "chances are we will just ignore, if not and we write to you just confirm the same situation and we will almost definately not penalise you". They never even contacted me again about it.
Soldato
Sorry forgot this bit.
You paid into 2 active ISAs. The only way you can do that is :
1) Start with ISA 1, pay in £100
2) Transfer ISA 1 to ISA 2
3) Pay in £100
Thats allowed, from what you have said you :
1) Paid £100 into ISA 1
2) PAid £100 into ISA 2
Thats not allowed
You could transfer to a HTB ISA, assuming you don't have more than the £1000 initial max deposit. Otherwise it gets quite complicated with split ISAs.
HMRC will perhaps toe a slightly different line to Halifax. As it's not clear from what you've said there's also a chance that you've been misinterpreted.
Thank you for that. I will have around 25k although Its sitting in a crappy savings account with probably next to no interest.
I dont have the best paying job. Its about 1600pcm after tax. Doable though?
Sorry you lost me. You have £25k savings right now and the bank will lend you £100k?
Why not just buy a £125k place with your 20% deposit?
£100k mortgage over 25 years will be about £550 a month. If that is what you are asking? So on £1600pcm you will have just over £1k to go on bill/ shopping and socialising, which is enough.
Or you asking if you can save £25k on your £1,600pcm wage? Well that depends entirely on your outgoings at home and how disciplined you are
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Anyone got a Halifax HTB ISA?
My mobile application is now saying that account isn't supported by mobile/internet banking?!
Was working fine up to now.
My mobile application is now saying that account isn't supported by mobile/internet banking?!
Was working fine up to now.
Soldato
Same, was working before. I'm sure they'll sort it soonish
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Still not working....
Sorry you lost me. You have £25k savings right now and the bank will lend you £100k?
Why not just buy a £125k place with your 20% deposit?
£100k mortgage over 25 years will be about £550 a month. If that is what you are asking? So on £1600pcm you will have just over £1k to go on bill/ shopping and socialising, which is enough.
Or you asking if you can save £25k on your £1,600pcm wage? Well that depends entirely on your outgoings at home and how disciplined you are
I cant find one I like for less than 150k which I cant do at the moment. I have it pretty nice at home, so might stay here until I can afford an actual house. (I assume would be a better investment, no ground rent etc) They start from around £200k for a nice ish two bed. Better paying job and a little longer I think.
Doesnt work how? As in not showing when use a browser to log in to internet banking?