What you need to know about Help to Buy ISAs
This is a government scheme to aid first-time buyers save for a mortgage deposit to buy a home.
Savings are tax free with the added bonus of receiving government contributions of 25% to your savings, up to a maximum of £3,000 on savings of £12,000. So for every £200 saved, the government will contribute £50.
The minimum amount you need to qualify is £1,600, which gives a £400 bonus.
Help to buy ISAs are available to each first-time buyer, not each home. If you are buying a property with your partner, you will be able to get up to £6,000 towards your mortgage deposit.
Instruct your solicitor/conveyancer to apply for your government bonus once your purchase offer has been accepted. Don’t wait until completion as this will be too late.
Once you have received the bonus, it will be added towards the purchase of your new home.
– You need to be classified as a first-time buyer and not own a property anywhere in the world
– You must be aged 16 years or over
– You can use it to buy any home worth up to £250,000 (or up to £450,00 in London)
– You can use a Help to Buy ISA with any mortgage; you are not restricted to a Help to Buy mortgage
– You can’t use a Help to Buy ISA if you are going to rent out the property
– You can’t use it on an overseas property
– You can’t have more the one Help to Buy ISA
Author: Mel Johnson