High street banks may not accept your Help to Buy ISA application

Image of the outside of a Halifax in Leeds city centreHigh street banks are busy due to the deadline for Help to Buy ISAs looming.

Some banks appear to be closing the deadline for the Help to Buy ISAs a day early due to the high demand.

The Help to Buy ISA deadline for new customers closes on Saturday 30 November.

But many major banks simply do not have enough time to process your application due to the increase in requests to open these ISAs.

Kieran Holland is a manager at a major high street bank, he said: “Most banks are completely booked up but for existing customers, it can be quite easy just to pop in and open an account.

“It is a really good opportunity to help save for a deposit on your first home and it is really good and popular for students.”

Philip Daniels spoke to Kieran, and also the general public to see what they know about these ISAs and whether they are going to open one.

Lloyds Bank said: “We can’t guarantee your application will be successful, but it’s highly unlikely the application will be rejected”.

After speaking to most of the other major UK banks they all said something similar.

The average house price in the UK is up by 40% since 2012 and for first-time buyers, average prices have risen by 41.5% according to The Money Charity.

Mortgage rates have also gone up since 2012, increasing from £1.22 trillion to £1.39 trillion.

If you have a Help to Buy ISA the government will top-up your investments by 25% to the contribution limit of £12,000, totalling a maximum of £3,000 to go towards your mortgage.

Are you eligible for a Help to Buy ISA? You are if…

  • You are a first-time buyer.
  • You are aged 16 or over.
  • You can use it to buy any home worth up to £250,000 (or up to £450,000 in London).
  • You can use a Help to Buy ISA with any mortgage; you’re not restricted to a Help to Buy mortgage.

Be the first to comment on "High street banks may not accept your Help to Buy ISA application"

What do you think?

This site uses Akismet to reduce spam. Learn how your comment data is processed.