Help to Buy: ISA is an account aimed to help you save for your first home. The Help to Buy: ISA is a tax-free savings account in which you can make regular deposits of up to £200 a month. You will receive a government bonus of 25% of the amount saved in your Help to Buy: ISA.
You can deposit up to £1,200 in the first calendar month of account funding, and then continue to make regular deposits of up to £200 in your Help to Buy: ISA each calendar month thereafter.
Accounts are limited to one per person with a minimum bonus amount of £400 on a balance of £1,600 and maximum bonus amount of £3,000 on a balance of £12,000 or more.
To apply for a Help to Buy: ISA you must be a UK resident, aged 16 or over and a first time buyer and have never previously owned a residential property.
You can only pay into one cash ISA and/or one stocks and shares ISA each tax year. If you have already paid in more than £1,200 into a cash ISA this tax year you will not be able to pay into a Help to Buy: ISA until the next tax year 2016/2017. If your current tax year subscriptions remaining in your cash ISA are £1,200 or less and you wish to transfer those current tax year subscriptions into your Help to Buy: ISA, please see how to do this in the Paying in to your ISA tab.
You can apply for the Help to Buy: ISA in branch or by calling us, please see more details in the Apply tab.
You can manage the account using online, mobile, in branch or telephone banking.
More flexible than Halifax option (you can make multiple deposits each month up to £200 via any method) and now the same rate too.
Can also be managed via Mobile app (Halifax cannot)
Top comments
anewman
14 Mar 1630#11
This is just a scam designed to prop up the property market to help first time buyers overstretch themselves and get big mortgages they can't afford once interest rates rise.
Better in the scheme than out of it, but do be aware of what you're letting yourself in for.
I think this may be to reduce the amount of people abusing the offer. Help to Buy is aimed at first time buyers looking to get on the property ladder, not for those already in a house looking to upgrade to something bigger, or those that can manage to afford bigger (which is great). This happened with the previous help to buy scheme (certainly in Scotland) as there were limited funds which ran out quickly, as a lot of the money was used by families moving from an owned property (i.e 3 bedroom semi/terrace/flat) to a larger family home (i.e 4/5 bedroom detached), and this left a lot of first time buyers struggling to get help to buy funds for flats/3 bedroom homes.
In most parts of the country £250k is a generous limit, if you able to afford more (and the deposit for this) then great, that's amazing, but then you are not really the target audience for the scheme so I can see why the limits are there. Good point in making it known though, as I am sure a lot of people are not aware of that restriction.
SFconvert
14 Mar 166#20
Really? This is effectively just tax payer cash going straight into the pockets of the big house builders like Barrats etc. These developers are now making the best profit margin on every house they build for decades, possibly ever. This is a zero sum gain for those taking advantage of the scheme, and a severe detriment to those who are not part of it.
Do you honestly think it's a coincidence that these same house builders were amongst the biggest donors to the conservative party for the last 2 elections?
ses6jwg
14 Mar 165#12
What a load of piffle.
All comments (111)
m1chaels
14 Mar 16#1
I wonder if you do not intend getting the govt top up you could get one of these accounts even if you are not a ftb....
ses6jwg to m1chaels
14 Mar 161#2
You have to sign a declaration stating you have never owned a property.
ziggy999 to m1chaels
14 Mar 163#3
No. because they don't give you the cash. I believe your solicitor claims it when the conveyancing goes through.
m1chaels
14 Mar 16#4
I'm not interested in the govt cash which obviously I don't qualify for but would like the 4% interest on an ISA that the bank are paying when for normal ISA customers they are only offering 1.3%.
DealF1nder
14 Mar 161#5
No, unfortunately even if you do not intend to claim the govt bonus you can not open an H2B ISA
JJMPSP
14 Mar 165#6
You get a voucher as a reward anyway, not cash.
This is an excellent incentive from the government towards FTB's and it literally takes 5 minutes to open a new account. Hot from me!
Froggy12
14 Mar 16#7
Just reading up on H2B ISA, it seems that you can indeed benefit from the interest paid and withdraw this plus your capital at a future point if you decide against buying property. I havent checked the Santander small print though (headline is no withdrawal penalty).
All usual conditions of application will apply (16+, never owned property etc)
chenzz
14 Mar 162#8
apparently, you can only buy property cheaper than 250000 (450000 in London) to be eligible for the government bonus.
I hated that no one mentioning this!
KevClark1985 to chenzz
14 Mar 1615#9
I think this may be to reduce the amount of people abusing the offer. Help to Buy is aimed at first time buyers looking to get on the property ladder, not for those already in a house looking to upgrade to something bigger, or those that can manage to afford bigger (which is great). This happened with the previous help to buy scheme (certainly in Scotland) as there were limited funds which ran out quickly, as a lot of the money was used by families moving from an owned property (i.e 3 bedroom semi/terrace/flat) to a larger family home (i.e 4/5 bedroom detached), and this left a lot of first time buyers struggling to get help to buy funds for flats/3 bedroom homes.
In most parts of the country £250k is a generous limit, if you able to afford more (and the deposit for this) then great, that's amazing, but then you are not really the target audience for the scheme so I can see why the limits are there. Good point in making it known though, as I am sure a lot of people are not aware of that restriction.
JohnnyUtah to chenzz
14 Mar 162#10
First time buyers buying property of £250,000 to £450,000 .... ha!.
Is this Property Porn with Phil & Kirsty?
JayS2014 to chenzz
14 Mar 16#67
yea, if you can find a property at a reasonable price in London. Short supply, high demand and all these developments are ridiculously priced.
anewman
14 Mar 1630#11
This is just a scam designed to prop up the property market to help first time buyers overstretch themselves and get big mortgages they can't afford once interest rates rise.
Better in the scheme than out of it, but do be aware of what you're letting yourself in for.
So you REALLY think this is intended to HELP first time buyers and not some other group of people?!
Watch what happens when it comes to everyone cashing these in and bidding against other buyers and buy to let investors!
KevClark1985
14 Mar 164#14
Actually you are now tested when applying for a mortgage on your ability to manage interest rate rises (I think it was a 3% rise they check on when I got a mortgage 18 months ago). As with anything though, it does rely on people being sensible to a degree. I could of borrowed another £100k+ according to the lenders, and I could of currently afforded the monthly payments. However we decided to go for a more modest first home (i.e 3 bedroom rather than 4) and give ourselves much more scope for rises, and some extra disposable income - it's down to the buyers to be responsible and live within their means to an extent.
The old help to buy scheme hugely helped us, we could easily afford the monthly payments (our rent was more expensive than our mortgage) but finding the deposit was not so straight forward. Anyway, great scheme, its 25% of your deposit for nothing really as you are saving anyway. No idea why some folk are so against it.
CelicaGT-Four
14 Mar 161#15
Very helpful, thanks for posting this. It has given me a kick up the backside to get this sorted and saved me the time of reading through MSE to find the best deal!
DealF1nder
14 Mar 161#16
You can open an H2B ISA, as long as you do not or have never owned a property, if you later decide not to buy a property, when you close your ISA you will still get the interest.
anewman
14 Mar 163#17
Because other much more sensible things can be done to make housing more affordable that aren't being done. The scheme isn't designed to help buyers, it's designed to help sellers and over-inflate prices.
bobmccluckie
14 Mar 164#18
You clearly don't know how the scheme works.
There is a maximum amount the govt will give you, which is hardly going to lead to a bidding war. You never see the money. Your solicitor uses it to pay towards your deposit when you buy a house. You can't have one if you own a property already, anywhere in the world.
It is a brilliant way of helping youngsters trying to save towards a first purchase.
uptwisting
14 Mar 161#19
Not piffle.
Help the Buy ISA is there to help people save for a deposit, yet by the time they save enough money house prices will have risen past the amount saved, the Govt knows this, especially in LDN.
It's not a bad scheme in essence but it's a token gesture and does nothing to even part help the house crisis, in fact in some ways it makes it worse.
Another demand led scheme that will do little to change the most vital aspect of the housing challenge, supply.
Then there is the tie to prescribed limits for house prices, another pathetic mistake from the Government which in the long term will only help big developers, or harm them if prices increase in the areas they want to build, which will in turn harm us because they won't build.
If you can access this fund then great but in my mind it's not a hot deal because it's a long term saving account you can't use on anything but a house.....a house which will most likely rise past the amount you've saved as a deposit.
SFconvert
14 Mar 166#20
Really? This is effectively just tax payer cash going straight into the pockets of the big house builders like Barrats etc. These developers are now making the best profit margin on every house they build for decades, possibly ever. This is a zero sum gain for those taking advantage of the scheme, and a severe detriment to those who are not part of it.
Do you honestly think it's a coincidence that these same house builders were amongst the biggest donors to the conservative party for the last 2 elections?
KevClark1985
14 Mar 161#21
Depends where you live, def not the case in Scotland. Price will rise slightly, but not hugely. London is a whole other kettle of fish however, and any help to buy scheme is not going to fix those issues.
Not disagreeing more can (and should) be done, but this scheme helps people. If it wasn't there, I doubt there would be anything else, so if it helps people in a small way, then great.
uptwisting
14 Mar 16#22
Check out how many of the top 10 house builders are now in the FTSE100 and how small the SME (small and medium enterprise) market it.
In the 80's and early 90's SMEs build 60%+ of our homes, UK built more than we ever have and price increases were stable.
In the late 90's until now volume house builders build 70% of homes and prices are still increasing with output at its lowest.
This ISA is another smokescreen and anyone who thinks it isn't AND complains about house prices probably own their own house and have enough money to help their kids, or they're particularly ignorant.
It's a positive scheme is so many ways, but only if the environment was any way conducive to supporting the average person.
WillPS
14 Mar 161#23
Is there a limit on the amount of H2B ISAs one can have, other than the 'pay in to one ISA per year' rule?
E.g. - I opened an account with Halifax in December. If I now stop paying in to this account, then open another on April 1st, can I open that ISA with £1200?
seancharles to WillPS
14 Mar 16#26
Yeah only one regardless of where and when you open it
seancharles
14 Mar 161#24
Several points - I used to work with a specific high street building society.
Yes you can apply and get be interest if you're not a FTB
If you're a couple and both are FTB you can both have one and both get the bonus
The bonus is paid by cash as part of your deposit by your solicitors
s24adm
14 Mar 16#25
Surely it shouldn't matter if it was the first time buyer going for the flat or the flat owner going for the 3 bedroom house. Assisting the flat owner upgrade assists the first time buyer by bringing a new cheap flat on the market. Supply and demand.
ykhan16
14 Mar 161#27
So the help to buy is based on a declaration you make? We do have a home at the moment but its under my name sooooo i was wondering if my wife was to apply for this would that be ok?
We're trying to up-size since we've had kids but properties are just so expensive and we're struggling to put a deposit together. Its really frustrating and we're desperate for any avenue of help- but obviously dont want to break the law! :disappointed:
seaniboy to ykhan16
14 Mar 16#30
Take the account and mortgage in her name, including her income with maintenance you have been paying into her account since "insert date" for house and kids you sign as guarantor, later adding your name to mortgage.
seancharles to ykhan16
14 Mar 16#31
There is no declaration. as long as your name has never been on the title deeds to a house yore eligible
seaniboy
14 Mar 161#28
Anyone taking a first big mortgage buying from any of big builders is a spoon anyway^ a little spoon at that.
A first property should be a fixer upper on the first property ladder step, why overstretch yourself by jumping in with both feet on the second or third run and risk snapping the ladder.
jacksonliam to seaniboy
14 Mar 16#58
A good deal as if you're saving for a deposit you might as well use this.
But what would really help me to buy would be wages rising at the same rate as house prices, or house prices falling in line with wages.
In the last 5 years there can't have been any job whose average wage rose in line with house prices.
Give it a 2 years and you'll won't be able to get a 3 bed in the south for under the 250k limit.
All the 'fixer uppers' goto auction for 'investors'. And I'm not sure any bank would give you a mortgage on property in need of enough work to considerably drop the price. I don't think you'll find much on rightmove that's not 'well presented'.
ihaveaquestion
14 Mar 16#29
An unusual question maybe, but if in theory you've never owned a house at this point in time, then take out this isa but inherit a property or part of a property between that point in time and the point you've accrued this £3000 bonus, will that mean you're no longer entitled to the bonus should you try to use it in the future?
seaniboy
14 Mar 16#32
Help to BUY, inherit - even selling the inherited property to fund your future mortgaged property you have never bought it or bought before, a inheritance of property is a gift and subject to Inheritance Tax over a certain amount, £325000.00
ihaveaquestion
14 Mar 16#33
thanks for the info sean!
Arsenal1234
14 Mar 16#34
Still not sure what to do with this I have a maxed out ISA this year and can probably save 8-9K next tax year so would I be better with a standard ISA or the help to buy ?( will be hopefully getting my own place in 3-4 years)
seaniboy to Arsenal1234
14 Mar 16#37
Well its only a month away to the new tax year and thus that years HTB ISA :wink:
SFconvert
14 Mar 16#35
Exactly, local builders used to build far more small developments and generally made a good living at it. Now these large house builders control the local market, pay large salaries to the management tier and currently make around a 20% profit for the shareholders. This does not represent good value
As any fule know, simply providing more cash to chase a finite supply of housing will just increase the price and do very little to increase the supply in the short term.
seaniboy
14 Mar 16#36
Ive edited, I put Capital Gains Tax not Inheritance Tax and corrected the amount :wink:
seaniboy
14 Mar 16#38
No one forces it to be a new build mortgage, the buyer chooses to buy from the big housebuilders, even if I could afford such a mortgage I would not for the reasons above.
seaniboy
14 Mar 16#39
KevClark1985
14 Mar 161#40
Not quite. Yes having "cheaper" properties available as people are able to upgrade to better ones is a good thing for availability. But what you have done is give the upgrading party the financial help (through HTB), rather than the first time buyer (as the upgraders took most of the funds). The ideal scenario is the upgraders "naturally" upgrade as they can afford, and you give first time buyers the help to get going. Availability is an issue, but for my generation the main issue is that even cheaper houses are, in relative terms, far more expensive than they used to be compared to earnings.
If I remember the figures correctly a home used to cost on average around 2.5-3 times the buyers salary, this is now more commonly 7 times or more (depending on the area). This means getting a deposit is much harder and takes much longer. The days of starting in a small, cheap affordable property and progressing up the ladder as you get older, are not really there anymore. We are being forced to jump onto the property ladder much higher than we should for a first time home.
Ah the poor South West...where people choose to live and work...and THEY push prices up themselves
ihaveaquestion
14 Mar 16#43
I have a current ISA with a different company but with only about a grand in it. Can I transfer this to Santander and use the £1000 as a deposit before paying the £200 each months..
bellboys to ihaveaquestion
14 Mar 16#45
There are only a few of these HTB ISA's that allow you to do this and I don't think Santander are one of them. I'll check...
The link i posted above says you can transfer..it does not say providers are either way bound too. Typical government dept...always botched job!
friiza
14 Mar 162#49
Wonder how many people are happy to take the government cash, and still look down on housing benefit recipients as scroungers, but not the landlords who ultimately receive the HB cash.
Clearly this scheme is inflating the bubble. People can't afford to buy property, so instead of allowing market forces to bring prices down, gov takes our cash to pump them up. It's effectively a bailout of the housing sector.
Overdoze
14 Mar 161#50
Whatever the alterior motives are... This is by far the best type of ISA to save for a deposit.
delboyd
14 Mar 16#51
You're confusing help to buy and help to buy ISA.
cidharten
14 Mar 161#52
Anyone knows where I can get just one cheap house to live in? Some of us are willing to break other people's arms off for saving an extra £ of any consumer items but as a nation we are willing to pay through the nose when it comes to property. And not many questions it
nabby81
14 Mar 161#53
House prices went up 18% in a year where I live
I looked at a shared ownership and they the developer increased the price by £8k once near completion so will £3k help me that much ..probably not
hot_top
14 Mar 16#54
What happens if you decide not to buy a property after 3 to 5 years of depositing £200 a month? Will you get any interest at all in cash?
Cheers!
fret123 to hot_top
14 Mar 161#61
Yes you will get all your money back and any tax free interest you have accrued but not the government bonus. If further reassurance is needed check out the matter on the Martin Lewis site.
DonkeyKonk
14 Mar 16#55
What about folk who own half a flat (shared ownership), anyone know if they can get this ISA ?
I own half a flat (well 45% share) which I am in the process of selling, hopefully. I have never had a mortgage, so I think I should be entitled to this ISA and would qualify as a 'first time buyer' (a proper one this time).
Any experts out there ?
(PS, If you can, avoid Shared Ownership).
marineville
14 Mar 16#56
not much of a scam if you have to wait at least a couple of years before getting conned... by the time you're able to pump up the price the four horsemen of the apocalypse and their horses will be pooping on your shoes anyway...
Morenenth
14 Mar 161#57
you're correct, I've yet to see a govt proposal that actually helps re affordable housing.
ses6jwg
14 Mar 162#59
People are getting this product confused with the Help 2 Buy Mortgage scheme (5% deposit match etc).
This can be used against any property purchase subject to limits. It doesn't have to be a new build development.
uptwisting
14 Mar 161#60
Ironically the best one did away with affordable housing requirements!
Last year sites under 10 units didn't have to pay affordable housing contributions, 2 local authorities challenged it and it was quashed.
Less market place competition, higher prices, local government is just as narrow minded as central, if not more so! They could've just changed the exemption on square footage not numbers. You're absolutely right, this government has and will do nothing for affordability, it's okay though, all of us guys are super rich so we can cope, and if we can't, as some Torys say, move to somewhere to you can afford.
mattyh333
14 Mar 16#62
Wish I knew how these worked. Baring in mind it's for poor people I can't see why they can't just explain them in no more
Than a sentence
Savvy97 to mattyh333
14 Mar 16#64
watch Martin Lewis' show, he makes it so easy to understand :smiley:
wayno93 to mattyh333
14 Mar 16#66
How are these for poor people... They are for anyone that's thinking of buying a house. Are you thinking of the help to save account that will be launched in Wednesday's budget?
hot_top
14 Mar 16#63
So is it worth investing in at 4%, even if we don't plan on buying?
foxxes
14 Mar 162#65
Yes how dare they give you free money towards a house for saving and a 4% interest rate. Disgusting isn't it. You havnt got a clue have you?
ses6jwg
14 Mar 161#68
We don't all live in London.
This government has done 10x more for aspirational middle income families than the last Labour government.
**** if you're a benefit basher though.
benmain84
14 Mar 161#69
Why are most people referring to new build developments help to buy scheme rather then help to buy isa. The latter is available for any house and not limited to new builds.
Maybe because most people who struggle to get a deposit are most likely reach a 5% deposit of £250,000 than 10% of a £180,000 and so more likely to get a new build. So only putting them into risk of buying a house they can't afford and allows new developers to put up prices.
bigup
14 Mar 16#70
I currently have a h2b isa with Halifax. Is there any way I can open one at Santander in the new tax year?
dottie6509 to bigup
15 Mar 16#73
Was just about to ask the same question, an answer would be much appreciated. I assume if you can you'd only be able to get the bonus from one, but I wouldn't mind the 4% tax free interest!
SF02
14 Mar 16#71
Yep gotta laugh. They'll give you 3 grand after 3 years - about 4% of the average home cost. The announcement was designed to boost prices by far more than that - and since then they are up 10-20% in much of the UK. So first time buyers are 6-14% worse off - far more than the £3k taxpayers are giving them. Property developers laughing all the way to the bank. Who donates most to political parties again?
Krizzo3
15 Mar 16#72
So you can save up to 1200 a year, and earn 4% (£48)?
Or am I not understanding this?
code2006
15 Mar 16#74
So if i save £1400 12x200
Do i then get the goverment 25% plus 4% per year?
Babbler to code2006
15 Mar 16#77
Yes but you only get the gov part if you buy a house.
ses6jwg
15 Mar 16#75
you can only have one
Babbler
15 Mar 16#76
Unfortunately by the time you get the maximum matched from the government in this isa (3 years) most houses will cost more than 250k in most areas unless you want a poky 1 bedroom flat somewhere...
Worth getting for the 4% interest though :smiley:
Ionicsoundwave
15 Mar 16#78
Did anyone mention this is for NEW BUILDS only?
Signed up for one of these with Halifax mid December and then the government changed their stance. It's technically useless as I'm highly unlikely to buy a new build home in London.
karlie88 to Ionicsoundwave
15 Mar 162#80
This is not true. Whoever told you was telling porkies.
othen
15 Mar 16#79
Well it is certainly not a scam: the population will increase by another 10,000,000 during the rest of my lifetime, and the land will not get any bigger, so this will reward those young people who can be bothered to save with some of my taxpayer money.
This is a fantastic deal for young people not yet in the property market, and will achieve exactly what the government should encourage people to do(save and become self-reliant). I know several young people who are already taking advantage of this deal.
Heat added.
Alan
KevClark1985
15 Mar 161#81
"Most areas" - I disagree with this, certainly not in Scotland where I live. Even in Edinburgh (which is very expensive) you can get 2/3 bedroom flats for that budget, go a 25-30 min train journey out of the city and that budget will get you a new build 4 bedroom detached house. House prices are not rising much either, so in 3 years will not be a massive difference based on current trends. I'd say having a budget for a 2/3 bedroom flat right in a major city, or a large 4 bedroom family home in a suburb to be more than acceptable for a first home, the latter is certainly a home most people would aspire to own and would never move from.
The issue is when you get closer to London, so you get less for your money and have to compromise the size of your home for the location. I wouldn't do it, but I know many that do and love living in London. So that is a personal and lifestyle choice, but this scheme should be suited for the masses, not 1 particular region. Personally think Help to Buy ISA is a great thing.
jimhuf
15 Mar 16#82
Dont buy something you cant afford and you will be ok
code2006
15 Mar 16#83
Thanks yes will be first time buyer
Hope its not for new builds tho
Babbler
15 Mar 16#84
No I believe its for any as long as first time buyer.
drummerdickens
15 Mar 16#85
I don't understand this. The ISA limit is £15,240, so why would depositing a mere £1,200 make you ineligible for a first time payment of £1,200 into your help to buy ISA?
othen
15 Mar 16#86
I'd agree with this, in most of the country £250,000 will buy a perfectly good first house or apartment, and in London the limit is £450,000.
othen
15 Mar 161#87
This is correct, the scheme is not restricted to new builds. I do wish contributors would do just a little homework before making erroneous (and sometimes rather silly) posts.
keanoo
15 Mar 16#88
London is actually in the South East and some people were actually born there.
DragonQ
15 Mar 16#89
The Halifax one has been 4% from the start.
I can't use the Help To Buy aspect of the ISA since there is no way my first property can be under £250k where I live. Still, a 4% regular saver isn't bad.
beechenom
15 Mar 16#90
And this is the problem I feel. I live in the SE of England, and that £250K cut off scuppers us for our first house. That is why we are looking at Shared Ownership, its the only way to get your foot on the ladder, along with the hundreds of others looking at the some homes.
code2006
15 Mar 16#91
Help to buy
Need some help here
Does the property need to be 250k and under?
Ionicsoundwave
15 Mar 16#92
Is this true - I'd love it if it was... a mortgage advisor told us!
anewman
15 Mar 16#93
The previous help to buy scheme was new builds only. The help to buy ISA might be different.
ses6jwg
15 Mar 16#94
The Help to Buy ISA is not limited to new build. 100% correct.
ashok
15 Mar 16#95
I opened a Account in January 25th and I have not deposited any money till now. Can I deposit 1200 this month in the same account?
ses6jwg
15 Mar 16#96
no
blondeyforever
15 Mar 16#97
Upto, not between.
blondeyforever
15 Mar 16#98
Help to Buy: ISA is definitely not restricted to new builds.
blondeyforever
15 Mar 16#99
If you're buying outside of London then the limit to the purchase price is £250k, in London the maximum is £450k.
blondeyforever
15 Mar 16#100
In the first month you can deposit a maximum of £1,200 then £200 each month thereafter and earn a £50 bonus for each £200 a month saved.
blondeyforever
15 Mar 16#101
Simple sentence for you...
Save up to £200 a month in the Help to Buy: ISA (plus up to £1,000 in the first month) and the Government will give you a £50 bonus each month that your Conveyancer can claim as you purchase your first property.
bugno
15 Mar 16#102
Halifax gives 4% as well. Same conditions plus Halifax gives extra 500 quid as far as I am concerned, just opened mine a week ago.
SFconvert
15 Mar 16#103
brilliant, not seen that. It's funny because it's true!
fstp13
15 Mar 16#104
whoMODStheMODS
16 Mar 16#105
What's the extra 500 quid that Halifax give you? Is it like a joining bonus?
suni
17 Mar 16#106
heat added
welshblob
17 Mar 16#107
I can't find the extra £500 stated on their website
geeadamg
18 Mar 16#108
Have you got a link. I can't find the Halifax £500 deal. I have other accounts with them so for logistics they are easier for me but haven't read the find print in either yet. But £500 would seal the deal for me.
whoMODStheMODS
20 Mar 16#109
I doubt you get anything for opening an account.
welshblob
20 Mar 16#110
I think the poster must be confusing the £500 cash back when you take a mortgage out with them as a first time buyer. Although I think most of the banks do.
ses6jwg
7 May 16#111
Halifax cutting rates for new customers making this even more attractive
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![[Xbox One] Q. u. b. e: Director's Cut on Deals with Gold](/images/topics/208716_1.jpg)
Opening post
You can deposit up to £1,200 in the first calendar month of account funding, and then continue to make regular deposits of up to £200 in your Help to Buy: ISA each calendar month thereafter.
Accounts are limited to one per person with a minimum bonus amount of £400 on a balance of £1,600 and maximum bonus amount of £3,000 on a balance of £12,000 or more.
To apply for a Help to Buy: ISA you must be a UK resident, aged 16 or over and a first time buyer and have never previously owned a residential property.
You can only pay into one cash ISA and/or one stocks and shares ISA each tax year. If you have already paid in more than £1,200 into a cash ISA this tax year you will not be able to pay into a Help to Buy: ISA until the next tax year 2016/2017. If your current tax year subscriptions remaining in your cash ISA are £1,200 or less and you wish to transfer those current tax year subscriptions into your Help to Buy: ISA, please see how to do this in the Paying in to your ISA tab.
You can apply for the Help to Buy: ISA in branch or by calling us, please see more details in the Apply tab.
You can manage the account using online, mobile, in branch or telephone banking.
More flexible than Halifax option (you can make multiple deposits each month up to £200 via any method) and now the same rate too.
Can also be managed via Mobile app (Halifax cannot)
Top comments
Better in the scheme than out of it, but do be aware of what you're letting yourself in for.
Here's how property should be portrayed on the TV https://www.facebook.com/theguardian/videos/10154016896071323/
The reality of home ownership people don't want to accept *COULD* happen to them: https://www.youtube.com/watch?v=SS9aVfjV9qY
In most parts of the country £250k is a generous limit, if you able to afford more (and the deposit for this) then great, that's amazing, but then you are not really the target audience for the scheme so I can see why the limits are there. Good point in making it known though, as I am sure a lot of people are not aware of that restriction.
Do you honestly think it's a coincidence that these same house builders were amongst the biggest donors to the conservative party for the last 2 elections?
All comments (111)
This is an excellent incentive from the government towards FTB's and it literally takes 5 minutes to open a new account. Hot from me!
All usual conditions of application will apply (16+, never owned property etc)
I hated that no one mentioning this!
In most parts of the country £250k is a generous limit, if you able to afford more (and the deposit for this) then great, that's amazing, but then you are not really the target audience for the scheme so I can see why the limits are there. Good point in making it known though, as I am sure a lot of people are not aware of that restriction.
Is this Property Porn with Phil & Kirsty?
Better in the scheme than out of it, but do be aware of what you're letting yourself in for.
Here's how property should be portrayed on the TV https://www.facebook.com/theguardian/videos/10154016896071323/
The reality of home ownership people don't want to accept *COULD* happen to them: https://www.youtube.com/watch?v=SS9aVfjV9qY
Watch what happens when it comes to everyone cashing these in and bidding against other buyers and buy to let investors!
The old help to buy scheme hugely helped us, we could easily afford the monthly payments (our rent was more expensive than our mortgage) but finding the deposit was not so straight forward. Anyway, great scheme, its 25% of your deposit for nothing really as you are saving anyway. No idea why some folk are so against it.
There is a maximum amount the govt will give you, which is hardly going to lead to a bidding war. You never see the money. Your solicitor uses it to pay towards your deposit when you buy a house. You can't have one if you own a property already, anywhere in the world.
It is a brilliant way of helping youngsters trying to save towards a first purchase.
Help the Buy ISA is there to help people save for a deposit, yet by the time they save enough money house prices will have risen past the amount saved, the Govt knows this, especially in LDN.
It's not a bad scheme in essence but it's a token gesture and does nothing to even part help the house crisis, in fact in some ways it makes it worse.
Another demand led scheme that will do little to change the most vital aspect of the housing challenge, supply.
Then there is the tie to prescribed limits for house prices, another pathetic mistake from the Government which in the long term will only help big developers, or harm them if prices increase in the areas they want to build, which will in turn harm us because they won't build.
If you can access this fund then great but in my mind it's not a hot deal because it's a long term saving account you can't use on anything but a house.....a house which will most likely rise past the amount you've saved as a deposit.
Do you honestly think it's a coincidence that these same house builders were amongst the biggest donors to the conservative party for the last 2 elections?
Not disagreeing more can (and should) be done, but this scheme helps people. If it wasn't there, I doubt there would be anything else, so if it helps people in a small way, then great.
In the 80's and early 90's SMEs build 60%+ of our homes, UK built more than we ever have and price increases were stable.
In the late 90's until now volume house builders build 70% of homes and prices are still increasing with output at its lowest.
This ISA is another smokescreen and anyone who thinks it isn't AND complains about house prices probably own their own house and have enough money to help their kids, or they're particularly ignorant.
It's a positive scheme is so many ways, but only if the environment was any way conducive to supporting the average person.
E.g. - I opened an account with Halifax in December. If I now stop paying in to this account, then open another on April 1st, can I open that ISA with £1200?
Yes you can apply and get be interest if you're not a FTB
If you're a couple and both are FTB you can both have one and both get the bonus
The bonus is paid by cash as part of your deposit by your solicitors
We're trying to up-size since we've had kids but properties are just so expensive and we're struggling to put a deposit together. Its really frustrating and we're desperate for any avenue of help- but obviously dont want to break the law! :disappointed:
A first property should be a fixer upper on the first property ladder step, why overstretch yourself by jumping in with both feet on the second or third run and risk snapping the ladder.
But what would really help me to buy would be wages rising at the same rate as house prices, or house prices falling in line with wages.
In the last 5 years there can't have been any job whose average wage rose in line with house prices.
Give it a 2 years and you'll won't be able to get a 3 bed in the south for under the 250k limit.
All the 'fixer uppers' goto auction for 'investors'. And I'm not sure any bank would give you a mortgage on property in need of enough work to considerably drop the price. I don't think you'll find much on rightmove that's not 'well presented'.
As any fule know, simply providing more cash to chase a finite supply of housing will just increase the price and do very little to increase the supply in the short term.
If I remember the figures correctly a home used to cost on average around 2.5-3 times the buyers salary, this is now more commonly 7 times or more (depending on the area). This means getting a deposit is much harder and takes much longer. The days of starting in a small, cheap affordable property and progressing up the ladder as you get older, are not really there anymore. We are being forced to jump onto the property ladder much higher than we should for a first time home.
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/413899/Help_to_Buy_ISA_Guidance.pdf
Edit; http://www.moneysavingexpert.com/savings/help-to-buy-ISA#aldermore
Clearly this scheme is inflating the bubble. People can't afford to buy property, so instead of allowing market forces to bring prices down, gov takes our cash to pump them up. It's effectively a bailout of the housing sector.
I looked at a shared ownership and they the developer increased the price by £8k once near completion so will £3k help me that much ..probably not
Cheers!
I own half a flat (well 45% share) which I am in the process of selling, hopefully. I have never had a mortgage, so I think I should be entitled to this ISA and would qualify as a 'first time buyer' (a proper one this time).
Any experts out there ?
(PS, If you can, avoid Shared Ownership).
This can be used against any property purchase subject to limits. It doesn't have to be a new build development.
Last year sites under 10 units didn't have to pay affordable housing contributions, 2 local authorities challenged it and it was quashed.
Less market place competition, higher prices, local government is just as narrow minded as central, if not more so! They could've just changed the exemption on square footage not numbers. You're absolutely right, this government has and will do nothing for affordability, it's okay though, all of us guys are super rich so we can cope, and if we can't, as some Torys say, move to somewhere to you can afford.
Than a sentence
This government has done 10x more for aspirational middle income families than the last Labour government.
**** if you're a benefit basher though.
Maybe because most people who struggle to get a deposit are most likely reach a 5% deposit of £250,000 than 10% of a £180,000 and so more likely to get a new build. So only putting them into risk of buying a house they can't afford and allows new developers to put up prices.
Or am I not understanding this?
Do i then get the goverment 25% plus 4% per year?
Worth getting for the 4% interest though :smiley:
Signed up for one of these with Halifax mid December and then the government changed their stance. It's technically useless as I'm highly unlikely to buy a new build home in London.
This is a fantastic deal for young people not yet in the property market, and will achieve exactly what the government should encourage people to do(save and become self-reliant). I know several young people who are already taking advantage of this deal.
Heat added.
Alan
The issue is when you get closer to London, so you get less for your money and have to compromise the size of your home for the location. I wouldn't do it, but I know many that do and love living in London. So that is a personal and lifestyle choice, but this scheme should be suited for the masses, not 1 particular region. Personally think Help to Buy ISA is a great thing.
Hope its not for new builds tho
I can't use the Help To Buy aspect of the ISA since there is no way my first property can be under £250k where I live. Still, a 4% regular saver isn't bad.
Need some help here
Does the property need to be 250k and under?
Save up to £200 a month in the Help to Buy: ISA (plus up to £1,000 in the first month) and the Government will give you a £50 bonus each month that your Conveyancer can claim as you purchase your first property.