Are you a First Time Buyer and saving for your deposit?
Then let the government boost your savings by 25%!!!
If you save in a Help to Buy ISA you will get a £50 bonus for every £200 you save up to a maximum bonus of £3,000.
Entry to the Help to Buy ISA closes on 30th November 2019
How does it work?
Help to Buy ISA’s are available from a range of banks and buildings societies and the accounts are available to each first time buyer. So if you are purchasing jointly then you can each benefit from the 25% bonus provided you each save the minimum amount required. If you both save the maximum allowable that a combined bonus of £6,000.
You can open the account with any amount but in your first month you can deposit a lump sum of up to £1,200 and then save up to £200 per month.
Once you have saved a minimum of £1,600 you qualify for the 25% bonus. The maximum bonus is £3,000 and this would mean saving £12,000 to qualify for it.
Your solicitor will collect the government bonus amount and this will be used along with your savings towards the deposit for your first home.
To qualify for a Help to Buy: ISA you must:
- be 16 or over
- have a valid National Insurance number
- be a UK resident
- be a first time buyer, and not own a property anywhere in the world
- not have another active cash ISA in the same tax year: If you have opened a cash ISA this tax year, you can open a Help to Buy: ISA but will have to take additional steps.
To qualify for the government bonus, the property you are buying must:
- be in the UK
- have a purchase price of up to £250,000 (or up to £450,000 in London)
- be the only home you will own
- be where you intend on living
- be purchased with a mortgage
If you have any questions on mortgages or saving for your deposit for your new home than please get in touch.
Your property may be repossessed if you do not keep up repayments on your mortgage.
David Butler specialises in providing mortgage advice tailored to your specific circumstances and mortgage needs. To arrange a free mortgage and insurance review get in touch.