The Help to Buy ISA deadline is fast-approaching
The Government’s Help to Buy ISA programme is ending on 30 November 2019.
It is recommended that prospective first-time buyers take urgent action to avoid missing out.
If you save for a deposit, the Government will add 25% on top of what you save if the money is in a Help to Buy ISA. This could be as much as £3,000 towards the cost of your first home.
Any prospective first-time buyer (over the age of sixteen years) can open an ISA account. They are available at most high street banks and buildings societies; you don’t need to bank with them already. Also, if you do get one, you don’t then have to use that bank or building society for your mortgage.
More need-to-know information:
- You can save up to £1,200 in your first month of opening the ISA, and then up to £200 each month thereafter. There is no minimum amount to save, and you can open an account with as little as £1.
- The Government will add 25%, tax-free, onto the amount saved in the ISA (up to a maximum of £3,000) when it is used to buy a home.
- An account can be opened by every first-time buyer as it is an individual product. This means that, if you are buying with a partner, you could each claim as much as £3,000 towards your deposit – a total of up to £6,000 when buying together.
- If you open an account before 30 November 2019 you can save funds up until 30 November 2029 and the bonus amount must be claimed by 1 December 2030.
- It can be used for any property costing £250,000 or less (£450,000 in London).
- You can take the money out whenever you want, even if you are not buying a property, but you will lose the 25% bonus.
- Your solicitor or conveyancer will apply for the bonus on your behalf during the conveyancing process.
If you are thinking of buying your first home, call our conveyancing team for tips and guidance or to find out how much you will need to pay in fees.