A Help to Buy ISA is a government scheme designed to help you save for a mortgage deposit to buy a home. To qualify you must be classified as a first-time buyer and not own a property anywhere in the world. A Help to Buy ISA gives you the added bonus of getting government contributions. Discover a few facts about Help to Buy ISA’s below;
First-time buyers can save up to £200 a month towards their first home with a Help to Buy ISA and the government will boost their savings by 25%. That’s a £50 bonus for every £200 they save and can receive a bonus of up to £3,000.
New accounts will be available for 4 years, but once opened, there’s no limit on how long they can save for
Accounts have been available through banks and building societies since Autumn 2015
Clients can make an initial deposit of £1,000 when they open the account – in addition to normal monthly savings. However, you can open a Help to Buy ISA with as little as £1
There is no minimum monthly deposit – but they can save up to £200 a month
Accounts are limited to one per person rather than one per home – so those buying together can both receive a bonus
Only available to individuals who are 16 and over
The bonus is available to first time buyers purchasing UK properties
The minimum amount you need to save to qualify for a government bonus is £1,600 (which gives you a £400 bonus)
Maximum bonus size of £3,000 per person
The bonus will be available on home purchases of up to £450,000 in London and up to £250,000 outside London
The bonus will be paid when you buy your first home
Source: Chartwells Mortgage Services. Full Help to Buy ISA T&C’s apply. Please speak to your bank for more information.