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Help to Buy ISAs explained

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Help to Buy ISAs explained

In late 2015, the government launched the Help to Buy ISA scheme, which will provide house-hunters with a boost toward their cash deposit if they are able to meet a suitable level of saving.

As experts in residential conveyancing, we regularly help clients to make the most of the complex legal aspects of Help to Buy and ensure that their loan agreements and paperwork are suitable and accurate. We also provide advice on the best options available to would-be home-owners looking for a solution to help them to afford a new home with the minimum financial risk.

Everything you need to know about Help to Buy ISAs

What is a Help to Buy ISA?

This all new type of ISA is an agreement with the government which rewards savers with a cash bonus on top of their own contributions. Save up to £200 per month with a Help to Buy ISA and the government will contribute a further 25% of everything you save, that’s a monthly contribution of up to £50.

You can also contribute a further £1,000 when you open your Help to Buy ISA and benefit from a £300 contribution to get you started.

Am I eligible for the scheme?

The Help to Buy ISA is only available to first time buyers, aged 16 or over. There is no specific salary requirement for eligibility. If you are old enough, and buying your first home, you can apply for an ISA.

What if my partner has already owned a home?

You can still apply for a Help to Buy ISA, with your partner or individually. They, however, will not be eligible.

Is there a limit to what the government will contribute?

Yes. The government will contribute a maximum of £3,000. But bear in mind that you will have to contribute £12,000 to receive that bonus.

What is the minimum I could save?

The minimum you will need to spend to gain a bonus is £1,600, which will earn you a £400 contribution from the government.

How will the government bonus be paid?

The bonus will be calculated and provided, in the form of a voucher, upon the purchase of your first home. If you do not buy a home, you will not receive a voucher.

When can I open my Help to Buy ISA?

You can open your account from 1 December 2015, or any time thereafter until December 2019.

When can I have my account until?

There is no limit to the amount of time you can use your account and pay into it.

How many Help to Buy ISAs can I have?

Unlike other ISAs, you are only allowed a single account, from a single provider.

Where can I get one?

Help to Buy ISAs are available from all banks and building societies, and interest rates will differ from one to the next. The bonus will remain the same, but the amount the bank contributes in increments will differ from one to the next.

Talk to Stephensons today to find out more about Help to Buy ISAs and everything you are entitled to, call us on 01616 966 229

For a free conveyancing quote without obligation for buying or selling a property please click here.