If you are a first-time buyer you only have until 30th November 2019 to take out a Help to Buy ISA.
So what is a Help to Buy ISA?
A Help to Buy ISA is a type of Individual Savings Account (ISA) designed to help you if you are a first-time buyer save for a house deposit. To support you the government will add 25% to your savings. This is limited to a maximum of £3,000 on savings of £12,000. So for every £200 you save, the government will add £50.
How does it work?
Help to Buy ISA’s are per person not per property. So if you are buying a property jointly you both can open an account and get twice the bonus.
As with other ISA products your savings are tax-free. The minimum amount you need to save to qualify for the bonus is £1,600. This would give you a £400 bonus.
The minimum about to start off your account is £1.00 but your initial deposit cannot be more than £1,000, to qualify for the 25% bonus.
You can save up to £200 a month tax-free.
Will I qualify for a Help to Buy ISA?
To qualify you must be classified as a first-time buyer and not own a property anywhere in the world.
You need to be 16 years old or over
Help to Buy ISA’s can be used with any mortgage, you are not restricted to a Help to Buy Mortgage.
The property to be purchased cannot be worth more than £250,000 which increases to £450,000 if you live in London.
Help to Buy ISA’s cannot be used to buy an overseas property or a property you will be renting out.
You cannot normally open a Help to Buy ISA and a Cash ISA in the same tax year. The exception is that some providers will let you save into a Cash ISA and a Help to Buy ISA within the same ISA wrapper. The same limits remain.
What else do I need to know?
The interest rate you will receive will depend on the Bank or Building Society. You will only receive interest on your savings not on the government bonus.
Once your savings have reached the minimum amount of £1,600 you can claim the bonus at any time.
Although Help to Buy ISAs close on the 30th November 2019 to new applicants you will have up to the 1st December 2030 to claim your bonus.
How Anstee & Co can help you buy your first home.
We are a firm of Independent Financial Advisers (IFAs). This means that we look at all the financial option available to you to help you to be able to afford your first home. The advice we offer is unbiased.
To find out more why not arrange a meeting. The initial fact-finding meeting is free and without obligation. A Meeting can be arranged at a time and location that is convenient for you. This includes early evenings and weekends.
We have offices located at-
- Kettering, Northamptonshire
- Stamford, Lincolnshire
- Towcester, Northamptonshire
- Birmingham, Snow Hill Queensway
- London, Pall Mall
Additionally, our financial planners live and make use of meeting rooms in
- Bedford, Bedfordshire
- Droitwich, Worcestershire
- Market Harborough, Leicestershire
- Northampton, Raunds, Brackley and Wellingborough in Northamptonshire.
Finally, why not contact us today to start the journey of owning your first home.
AS A MORTGAGE IS SECURED AGAINST YOUR HOME, IT COULD BE REPOSSESSED IF YOU DO NOT KEEP UP THE MORTGAGE REPAYMENTS.