If you’re a first-time buyer, you could get up to £3,000 towards buying your first property with a Help to Buy ISA.
The Help to Buy ISA could significantly add to your deposit for your first home. The government will add 25% to whatever you save in your ISA which could mean up to £3,000 free cash. For every £200 you save, you’ll receive a government bonus of £50.
You can put up to £200 a month into your Help to Buy ISA, but to get things going you can put a lump sum of up to £1,200.
You can also earn up to 2.58% interest tax-fee.
And, the ISA is for each individual first-time buyer which means if you are buying as a couple you could receive up to £6,000.
WHEN SHOULD YOU OPEN YOUR HELP TO BUY ISA?
You can open one anytime until 30 November 2019 so if you’re even just thinking about buying in the next few years it’s worth getting started. You’ll be able to save in it until 30 November 2029. The bonus will be added as long as you use it for a deposit by 1 December 2030.
Find out more about how to open your ISA and get started. https://www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work/
A Help to Buy ISA could make a real difference in the sort of property you are able to afford, especially if you are buying as a pair.
If you would like to chat about whether this option is right for you or not please do give us a call: 0203 003 5161.
Two important things to note about Help to Buy ISAs:
– Anyone can open one and it doesn’t have to be through your current bank
– If you take out an ISA with a particular bank you don’t then have to get a mortgage with that bank as well
Once you are in a position to buy your first home you will need to instruct your solicitor or conveyancer to apply for the government bonus for you. This will then be added to the deposit you have saved yourself.
‘The bonus must be included with the funds consolidated at the completion of the property transaction. The bonus cannot be used for the deposit due at the exchange of contracts, to pay for solicitor’s, estate agent’s fees or any other indirect costs associated with buying a home.’ – Help to Buy