Ask Jenni: “Can I Use The Help To Buy ISA Bonus If I’m Buying With Someone Who Already Has His Own House?”

Hi Jenni

“I live with my boyfriend in a house he bought before we met. We’re thinking of buying a bigger house together in the next couple of years and I’ve been saving £200 a month in a Help to Buy ISA. Since he’s already a homeowner and you can only use the Help to Buy ISA if you’re a first time buyer, am I right in thinking that I won’t be able to get the Help to Buy ISA bonus if I buy a house with him? From what I’ve read, it seems like we can use the money that I’ve put in the Help to Buy ISA, but we won’t get the government bonus.”

Dani, Manchester

Good news! You can get the Help to Buy ISA bonus, even though you’re buying a house with someone who is already a homeowner.

This is because the Help to Buy ISA is something you have as an individual. It doesn’t matter who you’re buying a property with.

To put it simply:

If you’re a first time buyer and you’re buying a house with someone who is already a homeowner, you can open a Help to Buy ISA and when you come to buy a house, you’ll get the government bonus on top of your savings. The person you’re buying with, however, will not be able to do the same.

If you’re a first time buyer and you’re buying a house with someone who is also a first time buyer, you can open a Help to Buy ISA each and you’ll both get the government bonus on your savings.

Now that that’s out the way. Here are a couple of things you should think about:

1 . Help to Buy ISAs can only be used to purchase properties worth up to £450,000 in London and £250,000 everywhere else. So, if you and your boyfriend have an eye on a house worth £280,000 in Manchester, for example, you won’t be able to use your Help to Buy ISA bonus for this

2 . The Lifetime ISA has a limit of £450,000 everywhere, so if you really want a house over £250k, it may be worth making the switch from your Help to Buy ISA. Read up about the Lifetime ISA terms and conditions first though. There are some rules that differ greatly from the Help to Buy ISA

3 . It might be worth you and your boyfriend each speaking to a lawyer before you purchase a home together. If you’re putting down uneven deposits, a lawyer can help you formally outline what will happen if you were to split up and sell the property