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    Morgage isa

    anyone got one . trying to save for a deposit for a Morgage.
    I bank with tsb they don't do a Morgage isa.

    anyone recommend a bank to switch to ?? with an help to buy isa

    11 Comments

    Took my Help to Buy ISA out with the Halifax about a year ago. Deposited £1000 to begin with then £200 per month.House purchase is going through now. Saved £3200 which will be topped up to £4000 plus interest which was 5% but went down to 3.5%. I chose Halifax because they were paying the most interest at the time.

    Don't think it matters which bank you use to save so long as they are part of the Help to Buy scheme.

    We had ours with Barclays as that's who we bank with. Like other post says maybe look at which bank offers the best interest rates

    Original Poster

    read on moneysupermarket that help to buy isa doesn't have any interest except from the government top up when you buy a house .

    you can't use the Government bonus as part of your deposit though, bear that in mind.

    Original Poster

    ? what I thought that was the whole point of it ?
    what can the money be used for if not deposit ?

    Original Poster

    adamspencer95

    you can't use the Government bonus as part of your deposit though, bear … you can't use the Government bonus as part of your deposit though, bear that in mind.



    ​​​? what I thought that was the whole point of it ?
    what can the money be used for if not deposit ?

    The Government Bonus cannot be used as part of your deposit payable on exchange of contract. It is to be used as part of the remainder of monies payable at completion.
    Explained here : How to Receive bonus: when you are close to buying your first home, you will need to instruct your solicitor or conveyancer to apply for your government bonus. Once they receive the government bonus, it will be added to the money you are putting towards your first home. The bonus must be included with the funds consolidated at the completion of the property transaction. The bonus cannot be used for the deposit due at the exchange of contracts, to pay for solicitor’s, estate agent’s fees or any other indirect costs associated with buying a home.

    Easy example: property value £100,000
    You put down 10% Deposit due at exchange £10,000
    Amount due at completion £90,000
    Payable by way of mortgage £87,000
    Claimed Government Bonus (maximum) £ 3,000

    Edited by: "Toptrumpet" 2nd Feb

    Original Poster

    oh that's cool thanks for the reply

    Original Poster

    oh that cool thanks for the reply

    If you open a help to buy isa and in the end decide not take up/apply for the Government Bonus then you just get the amount back that you've paid in (plus any interest earnt)
    Edited by: "Toptrumpet" 2nd Feb
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