The Help to Buy ISA - Your Questions Answered
Posted: Tuesday October 17, 2017
HOW DOES THE HELP TO BUY ISA WORK?
The Government will boost your new home savings by 25%. For every £200 you save, you will receive a Government bonus of £50 up to the amount of £3,000.
HOW DO I BEGIN?
1) Open an account with one of the many banks and building societies who offer the Help to Buy ISA.
2) You can start your saving by depositing up to £1,200 in the account in your first month
3) Deposit up to £200 per month in your account.
4) When you are ready to buy your new home and are closing down your ISA, your solicitor will apply for your bonus.
HOW MUCH WILL I RECEIVE?
The minimum Government bonus is £400 (meaning you must have saved at least £1,600). The maximum Government bonus is £3,000 (meaning you must have saved £12,000)
WHAT IF I’M BUYING WITH MY PARTNER OR MY FRIEND?
The Help to Buy ISA is available to each first time buyer. This means if you are buying a house with a partner or a friend you can both open your own help to buy ISA and receive up to £6,000 towards your first home.
WHAT PROPERTIES QUALIFY?
- Property in the UK
- Purchase price of up to £250,000 or up to £450,000 in London
- Buying with a mortgage
- Be the only home you will own
WHEN DO I RECEIVE THE MONEY FROM THE GOVERNMENT?
You have to have saved at least £1,600 into your Help to Buy ISA before you can claim your bonus.
When you are nearly ready to purchase a new home, you should inform your solicitor or conveyancer to apply for your Government bonus. Once it is received, it will be added to the money you are putting towards your new home.
IS THERE ANYTHING I CAN’T USE THE MONEY FOR?
The Help to Buy ISA bonus can only be put directly towards buying your first property. It cannot be used to pay for:
- Your solicitor fees
- Your estate agent fees
- The deposit due at the exchange of contracts
- Any other indirect home buying costs
WHO IS ELIGIBLE?
- First time buyer (you do not own another property anywhere in the world)
- UK resident
- 16 or over
- Valid National Insurance number
- Not have another active cash ISA in the same tax year
WHERE CAN I APPLY?
Help to Buy ISAs are widely available at most high street banks and building societies including RBS, Barclays, Halifax, HSBC & Santander.