The scandal is reported in The Telegraph.
Now, I can understand why the government don't pay the bonus until completion - else people could cash the ISA and get the bonus as part of buying and then back out and keep the bonus. Makes sense!
What makes no sense to me is why, even with that caveat, that cannot work. The whole process of buying a house means various fees, and a deposit, and then a mortgage that gets actually paid on completion. I can understand the deposit being handed over on exchange, else you could find people don't have it on completion. But why can one not "hand over the ISA" at exchange too. Some legally binding commitment that on completion the ISA is cashed and used as a whole, with the bonus, at completion. After all the mortgage itself is like that, not actually paid until completion but all part of a legally binding process set up at exchange.
I am shocked it is not simply a signature on a suitable contact at exchange that gives the solicitor the ability to cash the ISA with the bonus at completion to make up with the mortgage the purchase price.
This cannot be beyond the wit of the legal profession, surely?