Help to Buy: ISA for first time buyers

Industry News

Help to Buy: ISA for first time buyers

by on Wednesday 2 December, 2015 in Industry News

If you are saving to buy your first home, the Government’s Help to Buy: ISA, launched yesterday could provide a helpful bonus. Under the terms of the scheme, the Government will boost your new home savings by 25% so, for every £200 you save, the Government will add a bonus of £50. The maximum government bonus you can receive is £3,000.

Help to Buy: ISA accounts are available to each first time buyer, not each household. This means that if you are buying with a partner, you could receive a government bonus of up to £6,000 towards your first home.

You can save up to £200 a month into your Help to Buy: ISA, apart from the first month when you can deposit up to £1,200.

The minimum government bonus is £400, which means that you will need to have saved at least £1,600 before you can claim the bonus. The maximum government bonus you can receive is £3,000 – so, to receive that, you need to have saved £12,000.

Your solicitor or conveyancer will apply for the bonus when you are buying your first home and the cash will be put towards the cost of buying the home.

To be eligible for the scheme, you must:

  • Be 16 or over.
  • Have a valid National Insurance number.
  • Be a UK resident.
  • Be a first time buyer, and not own a property anywhere in the world.
  • Not have another active cash ISA in the same tax year. If you have opened a cash ISA this tax year, you can open a Help to Buy: ISA but will have to take additional steps.
  • Be buying a property in the UK up to the value of £250,000 or up to £450,000 if you are buying in London.
  • Be buying the property to live in yourself.
  • Be taking out a mortgage to fund your purchase.

The Help to Buy: ISA can be used in connection with other Government Help to Buy schemes such as the Mortgage Guarantee; Equity Loan; and share ownership schemes.

> See which lenders are offering the Help to Buy: ISA




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