Santander Help to Buy: ISA now paying 4%
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Santander Help to Buy: ISA now paying 4%

111
Found 14th Mar 2016
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)
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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....
m1chaels

I wonder if you do not intend getting the govt top up you could get one … 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....




You have to sign a declaration stating you have never owned a property.
m1chaels

I wonder if you do not intend getting the govt top up you could get one … 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....


No. because they don't give you the cash. I believe your solicitor claims it when the conveyancing goes through.
ziggy999

No. because they don't give you the cash. I believe your solicitor claims … No. because they don't give you the cash. I believe your solicitor claims it when the conveyancing goes through.



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%.
No, unfortunately even if you do not intend to claim the govt bonus you can not open an H2B ISA
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!
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)
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!
chenzz

apparently, you can only buy property cheaper than 250000 (450000 in … 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!



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.
chenzz

apparently, you can only buy property cheaper than 250000 (450000 in … 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!



First time buyers buying property of £250,000 to £450,000 .... ha!.

Is this Property Porn with Phil & Kirsty?
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.

Here's how property should be portrayed on the TV facebook.com/the…23/

The reality of home ownership people don't want to accept *COULD* happen to them: youtube.com/wat…9qY
Edited by: "anewman" 15th Mar 2016
anewman

This is just a scam designed to prop up the property market designed to … This is just a scam designed to prop up the property market designed 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.



​What a load of piffle.
ses6jwg

​What a load of piffle.


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!
Edited by: "anewman" 14th Mar 2016
anewman

This is just a scam designed to prop up the property market designed to … This is just a scam designed to prop up the property market designed 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.



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.
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!
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.
KevClark1985

No idea why some folk are so against it.


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.
anewman

So you REALLY think this is intended to HELP first time buyers and not … 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!



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.
Edited by: "bobmccluckie" 14th Mar 2016
ses6jwg

​What a load of piffle.



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.
ses6jwg

​What a load of piffle.


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?


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.


uptwisting

If you can access this fund then great but in my mind it's not a hot deal … 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.

KevClark1985

No idea why some folk are so against it.



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.
SFconvert

Really? This is effectively just tax payer cash going straight into the … 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?


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.
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?
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
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KevClark1985

I think this may be to reduce the amount of people abusing the offer. … 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.


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.
WillPS

Is there a limit on the amount of H2B ISAs one can have, other than the … 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?



Yeah only one regardless of where and when you open it
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!
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.


ses6jwg

You have to sign a declaration stating you have never owned a property.



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?
ykhan16

So the help to buy is based on a declaration you make? We do have a home … 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!




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.


ykhan16

So the help to buy is based on a declaration you make? We do have a home … 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!



There is no declaration. as long as your name has never been on the title deeds to a house yore eligible
ihaveaquestion

An unusual question maybe, but if in theory you've never owned a house at … 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?


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


Edited by: "seaniboy" 14th Mar 2016
seaniboy

Help to BUY, inherit - even selling the inherited property to fund your … 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 is a gift and subject to Capital Gains Tax over a certain amount, circa quarter of a million.



thanks for the info sean!
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)
uptwisting

Check out how many of the top 10 house builders are now in the FTSE100 … 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.


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.
ihaveaquestion

thanks for the info sean!


Ive edited, I put Capital Gains Tax not Inheritance Tax and corrected the amount
Arsenal1234

Still not sure what to do with this I have a maxed out ISA this year and … 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)


Well its only a month away to the new tax year and thus that years HTB ISA
SFconvert

Exactly, local builders used to build far more small developments and … 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.


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.
ihaveaquestion

thanks for the info sean!



Edited by: "seaniboy" 14th Mar 2016
s24adm

Surely it shouldn't matter if it was the first time buyer going for the … 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.



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.
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