Help to Buy ISA – What you need to know

By Louise Burgess on

Are you thinking of buying your first home?

It is becoming increasingly difficult for first time buyers to get onto the property ladder in the UK – here’s one way to save towards your dream home – the ‘Help to Buy ISA’.

The government have recently introduced the Help to Buy ISA – so if you already have a savings account –  what is the difference? How will this one help you?

If you open a Help to Buy ISA with any bank or building society between now and April 2019 the government will pay an additional 25% bonus on your savings, giving you up to £3,000 when you come to purchase a property.

Are there any terms and conditions?

Yes, there are terms and conditions. But all in all, the scheme is designed to help first time buyers and will benefit you when you do decide to purchase your first home. You should bear in mind the following:

  1. The scheme allows you to open up the Help to Buy ISA with an initial £1,200; after this there is a maximum payment of £200 per month which you can pay in.
  2. Once you have reached £12,000 the government bonus will be capped at £3,000 but you can continue to save with the same account.
  3. You can only open a Help to Buy ISA if you are a first time buyer.
  4. If you are purchasing a property jointly, you can each have your own individual ISA’s providing that you are both first time buyers. You will both be eligible for the bonus on your purchase.
  5. You cannot open another cash ISA for savings generally, but some lenders offer a split Help to Buy ISA where it is linked to a cash ISA.
  6. You can make withdrawals where needed.
  7. If you don’t use the money to buy a house you can just your savings without the bonus being added.

Once you have decided to open a Help to Buy ISA it is simple – keep saving until you are ready to purchase your home.

GET IN TOUCH

If you are in the process of buying a property and need a solicitor to apply for your help to buy bonus, call our residential property solicitors in Leeds, Bradford, Wakefield, Manchester and London for a free consultation on 0113 244 9931.

With solicitors in Leeds, Wakefield, Bradford, Manchester and London, we can bring our experience and knowledge to your matter, irrespective of where you are in the region.