If you are saving to buy your first home, save money into a Help to Buy: ISA and the government will boost your savings by 25%. So, for every £200 you save, receive a government bonus of £50. The maximum government bonus you can receive is £3,000 .
When will the Help To Buy ISA become available?
The new scheme was launched on December 1st 2015 and will remain open until 30 November 2019. The government bonus must be claimed through the purchase of a house by 1st December 2030
Who is eligible?
To qualify for a Help to Buy: ISA 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.
Are there any restrictions?
When setting up and opening a Help to Buy ISA, savers can pay in a one-off lump sum of £1,000. Savers can pay up to a maximum of £200 into their account each month. The total amount a saver can invest in the product during the term is £12,000. This could be topped up by an additional £3,000 from the bonus paid by the government. The minimum amount that needs to be saved to be eligible for the government bonus is £1,600 which will provide a £400 bonus).
What can Bowden Jones Solicitors do for you?
First-time buyers will need a solicitor to apply for their Help to Buy bonus when they are ready to purchase their home.
When ready to purchase, savers need simply to close their account and transfer the funds into another account (or their solicitor’s account). They will then receive a closing letter from their ISA provider, which then needs to be given to their solicitor. The solicitor will then use this letter to apply online for the government bonus, which can then be put towards the deposit for a first home. This can be done as part of the general conveyancing process
To find out more information about the Help to Buy ISA, please click here
To find out more about the Conveyancing services we have on offer at Bowden Jones Solicitors, please call us on 02920 484550.