Help To Buy ISA

13 Apr 2017

Saving to buy your first home is becoming increasingly difficult having regard to the financial climate we find ourselves in.  If you are currently saving to buy a property with a purchase price under £250,000 (£450,000 in London) and you are a first time buyer, by saving your money into a  Help to Buy ISA  account, the Government will boost your savings by  25%.  As such, for every £200.00 you save the Government will give you a bonus of £50.00.  The minimum government bonus is £400.00 so, to qualify for this, you will need to have at least saved £1,600 into your Help to Buy ISA before you can claim a bonus.  The maximum government bonus you can receive is £3,000 and to receive this you will need to have saved £12,000.  You can save up to £200 a month into your Help to Buy ISA but can deposit a lump sum of £1,200 in your first month.  If you are buying the property with someone else who is also a first time buyer that person can also open their own Help to Buy ISA account and receive their own individual bonus.
Once you have saved your required amount, you will then need to close your account and provide your solicitors with your Help to Buy ISA closing letter which your solicitor will then forward to Help to Buy to claim your government bonus.  You will also be required to sign a declaration form to ensure that you qualify for the bonus, which your solicitor will provide you with.
Your bonus cannot be used towards your deposit that is required for exchange of contracts, to pay your solicitors fees or estate agents fees.