This guide is designed to walk you through the process of closing your Help to Buy ISA with Nationwide, a crucial step when you're nearing the purchase of your first home. While Help to Buy ISAs are no longer open to new customers, many existing savers are still working towards their homeownership dreams with these accounts. Let's make sure you get that valuable government bonus!
Ready to claim your dream home (and that sweet government bonus)?
Welcome! If you're here, it likely means you're on the exciting path to buying your first property, and your Nationwide Help to Buy ISA is ready to play its part. This guide will take you through every single step to ensure a smooth closure and the successful claim of your well-deserved government bonus. Let's dive in!
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| How To Close Htb Isa Nationwide |
Step 1: Understand Why You're Closing Your Help to Buy ISA
Before you initiate the closure, it's vital to understand the primary reason: to claim your 25% government bonus towards your first home purchase. This bonus is a significant benefit, effectively adding £0.25 for every £1 you've saved, up to a maximum of £3,000 on £12,000 of savings.
- The Bonus Mechanism: The Help to Buy ISA bonus isn't paid directly to you. Instead, it's paid to your conveyancer (solicitor) between the exchange and completion of your property purchase. It will then be used towards your completion costs, such as the mortgage deposit or legal fees (though not the initial exchange deposit).
- The Crucial Closing Statement: To claim this bonus, you must obtain a specific "Closing Statement" or "Closing Document" from Nationwide once your account is closed. Your conveyancer will need this document to apply for the bonus on your behalf. Do not withdraw your funds without requesting this statement!
Step 2: Liaise with Your Conveyancer (Solicitor)
This is a critical preparatory step. Do not close your Help to Buy ISA until your conveyancer advises you to do so. They are the experts in the house buying process and will guide you on the optimal timing for closure.
- Why wait for your conveyancer? Your conveyancer will typically advise you to close the account once your offer on a property has been accepted and you are nearing the exchange of contracts. This ensures that the closure aligns with the bonus claim process and avoids any unnecessary delays or complications.
- Providing Necessary Information: Inform your conveyancer from the outset that you have a Help to Buy ISA. They will also require you to sign a "First Time Buyer Declaration Form" as part of the bonus application.
Step 3: Choose Your Closure Method with Nationwide
Nationwide offers a few ways to close your Help to Buy ISA. Choose the method that is most convenient for you.
QuickTip: Read actively, not passively.
Sub-heading 3.1: Closing Online via Internet Bank (Recommended for ease)
This is often the quickest and most straightforward method if you're registered for Nationwide's Internet Bank.
- Log in to Nationwide Internet Bank: Go to the Nationwide website and log in to your online banking account.
- Navigate to your Help to Buy ISA: Once logged in, find and select your Help to Buy ISA from your list of accounts.
- Access Account Services: Look for an option like "Other account services" or similar.
- Select "Close account": Within the services menu, you should find an option to close your account.
- Specify where to receive funds: You'll be prompted to enter the details of the account where you wish the funds from your Help to Buy ISA to be transferred. This is usually your current account.
- Confirm and Request Closure: Review the details and confirm your request to close the account.
Sub-heading 3.2: Closing In-Branch (For personal assistance)
If you prefer face-to-face interaction or need additional support, visiting a Nationwide branch is a viable option.
- Locate your nearest Nationwide branch: Use the branch finder on the Nationwide website to find a convenient location.
- Gather necessary identification: Crucially, bring some form of photographic identification, such as your passport or driving licence. You may also need your debit card and PIN if applicable.
- Speak to a Nationwide advisor: Inform them you wish to close your Help to Buy ISA and request the necessary closing statement for your conveyancer.
- Provide transfer details: They will ask you where you want the funds transferred. You can opt for a transfer to your Nationwide current or savings account, or a cheque.
Sub-heading 3.3: Transferring to Another ISA (Less common for house purchase, but an option)
While the primary goal for closing a Help to Buy ISA is to claim the bonus for a house purchase, you can also transfer its balance to another ISA (either with Nationwide or another provider).
- Important Note: If you transfer your Help to Buy ISA funds to a different ISA (e.g., a Cash ISA or Lifetime ISA) without using them for an eligible property purchase, you will not receive the Help to Buy ISA government bonus. If you transfer to a Lifetime ISA, the funds will then qualify for the LISA bonus, subject to LISA rules and annual contribution limits.
- The Transfer Process: If transferring to another provider, do not withdraw the money yourself. Your money will lose its tax-free status if you do. Instead, apply with the new provider and explicitly tell them you want to transfer an existing ISA. They will handle the transfer process directly with Nationwide.
Step 4: Receiving Your Closing Statement
Once you've initiated the closure, Nationwide will process your request.
Tip: Remember, the small details add value.
- Online Closure: If you close online, Nationwide will typically send you the closure statement by post within 7 days.
- In-Branch Closure: The branch will process the closure, and the statement should follow by post within a similar timeframe.
- What to expect: The closing statement will confirm that your Help to Buy ISA is closed and will show your closing balance. This document is absolutely essential for your conveyancer to claim the government bonus. Keep it safe!
Step 5: Forward the Closing Statement to Your Conveyancer
As soon as you receive your Help to Buy ISA closing statement from Nationwide, immediately send it to your conveyancer. This is the key piece of evidence they need to apply for your government bonus.
- Timing is key: Your conveyancer will typically apply for the bonus between the exchange and completion of your property purchase. The bonus must be received by your conveyancer on or before the completion date to be used as part of your funds. It can take at least 12 business days for the bonus to be processed and paid once requested by your conveyancer.
Step 6: What Happens to Your Funds and the Bonus
- Your Saved Funds: The money you have saved in your Help to Buy ISA (excluding the bonus) will be transferred to the nominated account you provided during the closure process. This usually happens fairly quickly after closure.
- The Government Bonus: The bonus itself is not paid to you directly. It's paid to your conveyancer by the Scheme Administrator. This payment is typically then deducted from the total amount you need to complete the purchase, or it may be refunded to you after completion, depending on your solicitor's process.
Step 7: What if Your Property Purchase Falls Through?
Life happens, and sometimes property purchases don't go as planned. Don't worry!
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- Purchase Failure Notification: If your property purchase falls through after you've closed your Help to Buy ISA and received your funds, your conveyancer can provide you with a "Purchase Failure Notification."
- Reopening Your ISA: With this notification, you can potentially reopen your Help to Buy ISA with Nationwide and re-deposit the funds (up to the balance at the point of closure). You can then continue saving or use it for a future property purchase. You generally have 12 months from the original closure date to do this.
10 Related FAQ Questions
How to claim the Help to Buy ISA bonus?
To claim the bonus, you must first close your Help to Buy ISA and obtain a closing statement from Nationwide. Then, provide this statement to your solicitor/conveyancer, who will apply for the bonus on your behalf with the Help to Buy scheme administrator. The bonus is paid directly to your solicitor.
How to use the Help to Buy ISA bonus?
The government bonus is paid to your solicitor and used towards the completion costs of your property purchase, such as your mortgage deposit (not the initial exchange deposit) or legal fees. It's designed to contribute to the funds needed on completion.
Tip: Review key points when done.
How to withdraw money from a Help to Buy ISA without closing it?
You can withdraw money from your Help to Buy ISA at any time. However, any money withdrawn before closure will not count towards your government bonus calculation, as the bonus is calculated on your final closing balance. Simply request a withdrawal through Nationwide's online banking or by visiting a branch.
How to transfer a Help to Buy ISA to a Lifetime ISA (LISA)?
You can transfer your Help to Buy ISA to a Lifetime ISA. To do this, open a LISA with a provider that accepts transfers and instruct them to transfer your Help to Buy ISA funds. Do not withdraw the money yourself, as this will lose its tax-free status and the Help to Buy bonus eligibility. The transferred funds will then qualify for the LISA bonus, subject to LISA rules and annual contribution limits (currently £4,000 per tax year for contributions). You cannot get both the Help to Buy bonus and the LISA bonus on the same funds.
How to check my Nationwide Help to Buy ISA balance?
You can check your Nationwide Help to Buy ISA balance by logging into your Nationwide Internet Bank, using their mobile banking app, visiting a Nationwide branch, or calling their customer service line.
How to find my Nationwide Help to Buy ISA account number?
Your account number will be on your ISA statements, within your online banking portal, or you can obtain it by contacting Nationwide directly via phone or by visiting a branch.
QuickTip: Look for patterns as you read.
How to manage my Nationwide Help to Buy ISA online?
Log in to Nationwide Internet Bank to manage your Help to Buy ISA. You can view statements, check your balance, and initiate withdrawals or account closure (as per the steps above).
How long does it take for the Help to Buy ISA bonus to be paid?
Once your solicitor applies for the bonus, it can take at least 12 business days for the funds to be processed and paid to them. Your solicitor will typically apply for it between the exchange and completion of contracts, aiming for it to be received by the completion date.
How to get a "Purchase Failure Notification" for my Help to Buy ISA?
If your property purchase falls through after you've closed your Help to Buy ISA, your conveyancer is responsible for providing you with a "Purchase Failure Notification." You will need to request this from them.
How to re-open a Help to Buy ISA after a failed purchase?
If you have a "Purchase Failure Notification" from your conveyancer, you can typically re-open your Help to Buy ISA with Nationwide and re-deposit the funds that were in the account at the point of closure. You usually have 12 months from the original closure date to do this. Contact Nationwide for the specific process.
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