Help to Buy ISA

Help to Buy ISA

What is it? 

If you are saving to buy your first home and you do so using a Help to Buy ISA the Government will boost your savings by 25%. The definition is strict. A first time buyer is someone who does not own and has never owned an interest in a residential property, either inside or outside the UK, whether bought or inherited.

How much will I receive?

In your first month you can deposit a lump sum of £1,200 and each month thereafter a maximum of £200. For every £200 you save you will receive a Government bonus of £50. You will need to have a minimum of £1,600 saved to receive a Government bonus (in this case of £400). The maximum you can receive the Government bonus on is £12,000 (a bonus in this case of £3,000). 





£1,600 (the minimum to receive bonus)






















£12,000 (the maximum you will receive a bonus on)


How can I obtain one? 

Help to Buy ISA's are available from a wide range of banks and building societies. The accounts are available to each first time buyer. So, if you are a first time buyer, buying with someone who has owned a property before, you can open one, but they are unable to. If you are a first time buyer buying with another first time buyer you can both open one. This means that if you and your partner are buying your first home you can double your bonus and receive up to £6,000. You can open a Help to Buy ISA anytime between December 2015 and December 2019 and you will receive the bonus up to 2030.

How do I receive the bonus? 

Once you find your first home to buy you will need to instruct a Solicitor who will be able to apply for your Government bonus. You will need to let your ISA provider know that you wish to close your account. You will then receive a closing letter from your ISA provider which will need to be given to your Solicitor. You will also need to sign a First Time Buyer Declaration. Your Solicitor will then use these documents to apply online for your government bonus. Please note that Solicitors are entitled to charge up to £50 + VAT for this service.

Are there any restrictions?

The bonus must be used towards the purchase price of the property upon completion. It must not be used for the deposit at exchange of contracts, to pay for your Solicitor fees or any other indirect costs associated with buying your first home. The bonus is only available on homes worth up to £250,000 or £450,000 in London. You are also unable to use the bonus towards a buy-to-let property.

Posted by Administrator
Lorem ipsum dolor sit amet, consectetur adipisicing elit. Dolores, eveniet, eligendi et nobis neque minus mollitia sit repudiandae ad repellendus recusandae blanditiis praesentium vitae ab sint earum voluptate velit beatae alias fugit accusantium laboriosam nisi reiciendis deleniti tenetur molestiae maxime id quaerat consequatur fugiat aliquam laborum nam aliquid. Consectetur, perferendis?

Related Articles: