How do Help to Buy ISAs work?
For many of us, getting on the property ladder is a dream come true. Saving for our new home however is often a daunting prospect and we are grateful for any help we can get! The Government has introduced various schemes over the years to give first time buyers a helping hand, one of the most recent being the Help to Buy ISA.
First-time buyers can open a Help to Buy ISA with a maximum of a £1,000.00 deposit and thereon deposit up to £200.00 per month into their account.
The Government has agreed to boost these savings by 25 percent meaning for every £200.00 you save, the Government will give you a bonus of £50.00.
The minimum bonus the Government will pay you is £400.00 which means that you need to save at least £1,600.00 before you can make your claim.
The maximum the Government will pay you is £3,000.00 which is achieved if you deposit at least £12,000.00 into your account.
If you are a first-time buyer, and at least 16 years old, you can open a Help to Buy ISA and use the bonus funds to purchase a home with a maximum purchase price of £250,000.00 (or no more than £450,000.00 in London).
It is also worth noting that the accounts are open to each first time buyer and not each household. This means that if, for example, two first time buyers purchase a home together they can both open a Help to Buy ISA account which would allow them to jointly receive a total bonus of up to £6,000.00.
Help to Buy ISA accounts can be opened with most major banks and building societies. The deadline for opening an account is 30 November 2019. You can make deposits until 30 November 2029 at the latest with any bonus claim being made no later than 1 December 2030.
Once you have been saving for a requisite amount of time, and you have found your perfect property, the next stage is to instruct a conveyancer. Your conveyancer will guide you through the process of buying your home, and will advise you when to close your ISA account, before applying for the bonus funds on your behalf.
If you have any questions about buying a property, or would like us to provide you with a competitive quotation, please do not hesitate to get in touch for a free and friendly chat.
Hyde office: 0161 368 631 Ashton office: 0161 330 2875
The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article