If you’re considering buying your first home within the next few years then now is the time to open your Help to Buy ISA as the scheme is only available until 30th November 2019.
WHAT IS A HELP TO BUY ISA?
Help to Buy ISA is a government scheme designed to help you save for a mortgage deposit to buy a home. To qualify you must be classified as a first-time buyer and not own a property anywhere in the world. Savings are tax free just like with any ISA product, however, a Help to Buy ISA gives you the added bonus of getting government contributions.
HOW DO HELP TO BUY ISA’s WORK?
The government will top up any savings you make by 25%, up to a savings limit of £12,000. So, for every £200 you save, the government will contribute £50. This means you can earn a maximum of £3,000 from the government. The minimum amount you need to save to qualify for a government bonus is £1,600 (which gives you a £400 bonus). You can start off your ISA with a maximum initial deposit of £1,200 and up to £200 a month thereafter. The maximum government bonus you can receive is £3,000 and Help to Buy ISA’s are available to each first-time buyer, not each home. So, if you’re buying a property with your partner, for example, you could be able to get up to £6,000 towards your deposit. Help to Buy ISA’s are only available to open until 30th November 2019 and you must claim your bonus by 1st December 2030.
You can find further details at the HM Government website;