The Help to Buy ISA scheme will close to new accounts at midnight on 30 November 2019.
What is a Help to Buy ISA and do I need one?
The Help to Buy ISA is a savings account that you should open if you are saving to buy your first home. The Government will top up your savings by 25% for every £200 you save, subject to a minimum saving of £1,600 and a maximum top up bonus of £3,000. For example, if you saved £10,000 in your ISA, your bonus would be £2,500. Although this is not a massive amount in terms of house prices, it is free money and will go a long way to covering your legal fees and disbursements such as Stamp Duty Land Tax.
As an ISA, you will not pay tax on any interest earned whilst you are saving. The bonus is however only added at the end so you will not earn interest on it. There are plenty of ISAs to choose from with various banks and building societies offering different interest rates and terms.
What if I have a Help to Buy ISA already but have not saved enough to buy a property yet?
If you have already opened an ISA and are saving already, or you do so before 30 November 2019, you will be able to continue saving in this account until November 2029 and benefit from the Government bonus top up on your savings. So even if you haven’t the ability to save much now, you should still open an account quickly and start saving!
Who can apply for a Help to Buy ISA?
Anyone over 16 years old who is a first-time buyer can open a Help to Buy ISA. It is also important to note that the scheme is not limited to each home purchased; the scheme is available per person meaning that a couple buying their first property together could claim £6,000 towards their new home.
For further information please visit www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work or contact Laura Mechen.
On instructions received before 12 noon on Tuesday 24th December 2019, we are offering a 10% discount* on our legal fees for first time buyers (purchase only).
So please feel free to give us a call on 01825 762281 for a quotation using the code HTBI19 to take advantage of the discount.
*Not to be used in conjunction with any other offers.