Help to Buy ISA - how is the money used please?

[twinklelittlestar01]

Hi all,

My husband and I are about to exchange on a London flat. My husband has a HTB ISA with approx £5500 in it and we anticipate £1375 govt. bonus on top.

With Covid and the festive season, everything seems a bit rushed and I admit my conveyancer is not as responsive as I would like!

We were asked for our 5% deposit in preparation for the exchange this week which we had (WITHOUT THE ISA) and paid.

My question is how and when can this ISA money be used then??

If not for used deposit/solicitors fees, we thought we could use for furniture etc once we completed but unsure if it can be? Will the "overpayment" be refunded?

Our mortgage terms accounted for 5% deposit with 40% from the govt. HTB scheme and the remaining 55% from a high street lender.

All the info online only talks about the bonus whereas I am asking about the full ISA amount ie. £5500 + £1375

If anyone could shed some light on this, that would be great!

Thanks so much in advance 😊

Rules may have changed since we bought our first place (2016) but if I recall the ISA bonus money was released direct to the solicitor. I can’t remember now if the actual ISA savings had to be transferred direct to them as well. It all definitely had to be part of our (10%) deposit. I would check with your conveyancer asap.

This guide might be useful: www.moneysavingexpert.com/savings/help-to-buy-isa/

DS bought last year. The government allowance was refunded to him by the solicitor on completion (less their costs), so effectively was used partly for conveyancing costs and the balance spent on what he wanted.

DD however has a Lifetime Isa so she gets the bonus added by the government as she deposits so can use hers towards the deposit.

With regard to moving the money around, DS had to close the ISA, pay the deposit to the solicitor and prove a closing statement. You need to speak to your conveyancer as the ISA would normally be closed when you paid the deposit.

My experience is the same as above. I am just completing on a purchase and had to close the Isa and send the paperwork to the solicitor. You only have a short time after the sale of the property to do this.
www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work/

As posted above. I recently completed using a Help to Buy ISA from Santander. You need to request a closure statement from your ISA holder (note you are NOT closing the account otherwise you lose the bonus). This statement takes 5 - 7 days to arrive which you forward to your solicitor. The solicitor will then confirm the final bonus amount for you (and apply for it) and use it towards the final settlement.

Thank you all for the replies and advise!

I am still desperately pushing for the Friday as it really would make a world of a difference! Will let u know what they say

Keep safe everyone x