Help To Buy Isa

[spathiphyllum]

OK AB, I actually need some intellectual help.

I've had a look and NatWest say that if i get a help to buy ISA, they want me to put £200 in a month, and the Gov will put in £50 (if i get it before the 29th). I'm sure I could put in less but to get the full benefit i'd need to put in at least £100.

I simply can't afford this, and in fact wouldn't be able to put that much in a month anyway.

Is it worth perusing, if I wouldn't see the full benefit like others may? People in my social circles are telling me to get one, but I just don't see the point whilst i'm living paycheck to paycheck.

What do others think?

Would it be worth getting one, and only putting in £50 a month?

[bednobs]

1) do you even want to buy a house?
2)is your situation likely to change?

[spathiphyllum]

Yes and what situation?

[bednobs]

the situation of you not being able to save anything

[woofgang]

well if the gov.t are going to top up your savings by 25% that's a good deal BUT if that will be all you can afford to save and you can only get it back to buy a house then maybe its not for you? If there is no benefit under 100 a month and you can't afford to save that they you have your answer!

[spathiphyllum]

"the situation of you not being able to save anything"

Most likely not especially now it's winter, my business gets rather quiet in winter less lawns more leaves

[spathiphyllum]

Woof that was my thought but my friends said even if i put £5 in it will be beneficial but I don't see it myself, as you say you only get it back when you buy a house soo... Is 25% of £5 a month really going to make a change that much? I doubt it will personally.

[teacake44]

If you've got plenty of spare time? how about a second job for savings.

[Old_Geezer]

No info on the ISA but he philosophy would be that it's always a good idea to save what amount you can. You need to be sure you intend buying a house, by the seem of things. That known, every little helps.

[Old_Geezer]

MY !

[spathiphyllum]

Jobs aren't that easy to come by which is why i started my own garden service. If I started another job that would apply serious restrictions to my current schedule and yes, I may make money, i fear my garden career would go down the pan due to restrictions on times etc..

[woofgang]

I just had a look. You will get the savings account only for the next 10 years (scheme closes in 2029) In that time you will have to have saved 1,600 to get anything and you will get 400. You will also have had to save up enough for the deposit, solicitors costs and so on as the govt payment is only payable at the point where you actually pay for the house. Good clear explanation here. If the account you are thinking of is interste bearing apart from the gov.t top up and if you have access to your money before you buy the house then maybe worth thinking about but to me unless you are sure you will make the amount AND are sure you will be able to buy AND you are sure you can also amass the other costs of buying and the deposit AND you have another lot of savings to cover life's emergencies then if it was me I wouldn't do it. https://www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work/

[TonyV]

some advice here

https://www.moneysavingexpert.com/savings/lifetime-isas/

[woofgang]

spath, a fiver a month for 120 months is only 600, you need to save twice that to get anything.

[spathiphyllum]

Thank you.

[Old_Geezer]

An immediate 20% increase before the ISA does it's thing, is not to be sneezed at. But you need to convince yourself of the 2 vital things. a. You can afford to save at a reasonable rate, and b. You will buy a place in the foreseeable future.

£5 a month, as woofie points out, ain't going to achieve enough. May as well save it elsewhere and miss out on the public 20% top-up.

[THECORBYLOON]

I take it this would be the first house you'd own?

[fiction-factory]

Even £100-200 a month aren't much really if you haven't any other savings already and want to get enough for a decent deposit. I think the £5 a month idea though is that you set the account up before it's too late and then you have the option of adding more if and when you can afford it- hopefully at some stage you may be in a position to save £200 a month or more and if you do decide in future that you can't save anything after all then at least you will still be able to get your initial £5 back.

[THECORBYLOON]

The money has to be used to buy your FIRST house.

[ubasses]

The other problem you will encounter is getting a Mortgage. If you can only save a very small amount and do not have much income during the winter, you are not going to be able to prove to any Bank that you can meet the monthly repayments. As mentioned this type of ISA must be used to buy a property.

[fiction-factory]

On reflection, I don't think you will get your £5 HTB ISA 'deposit' back if you don't eventually buy, but Martin Lewis suggests doing it so as to keep your options open. I think he's even suggested just £1