Sorry, another HTB ISA question...

[Winnipegdreamer]

Currently have our isa with Nationwide, chose them as we have a branch in town and it’s easy to pop and get statements or put in cash etc. Also they tend to be better for first time buyers as they do a better range of 90-95% mortgages and you can access different rates if you have an isa with them (or possibly don’t any more but that’s a whole other thread!)

Anyway, they messaged the other day to say interest rates are dropping. They are currently 2.5% but are dropping to something like 0.1% in the last year the interest amounted to something like £50ish over the term so not big bucks!

Would you move the ISA to another bank? The only banks we now have in town are either Lloyd’s or Barclays and neither of those are any good for mortgages for us - they don’t even come up on searches.

For the £50ish a year would you bother moving them to another bank?

No first not worth the hassle. Second all rates are plunging. Third you say nationwide will be good for you in terms of mortgage provider.

You do know you don't need to use the same bank for mortgage as htb ISA? Also most of the time, any "incentivised" mortgage rates are also available to mortgage brokers, so if you use one of those you have access to all the banks best rates.

If you can find a htb ISA with a better rate, definitely move it. It won't affect which mortgage you get in the future.

Also, why are you concerned about having a branch in town? Just manage it online.

Although you'd have to check that you're able to open a new account: the scheme closed to new members at the end of November last year.

@Rivergreen yes definitely aware of this, but nationwide has deals only given to customers who have the HTB isa with them

Also, as stated sometimes we’ve put in cash ie when we got married and also birthdays and Christmas’s. Everything else is managed online.