Help to Buy ISAs allow first-time buyers to save for a mortgage deposit with help from the Government which adds 25% on top of anything saved up to £12,000.
This is a fantastic scheme giving a financial boost to those looking to get onto the property ladder.
You can save up to £1,200 in your first month, and are then restricted to no more than £200 per month. Once you have saved at least £1,600 you are eligible for the 25% bonus. There’s also the benefit of 2.58% interest tax-free.
From 30th November 2019 new savers will not be able to open a Help to Buy ISA but if you open one before this date, you can keep saving into your account.
Even if you are years away from buying a home, it’s worth at least considering opening a Help to Buy ISA before the deadline, so that you can start saving and benefit from a 25% bonus towards the deposit of your future new home.
The scheme is set to keep paying out until 2030, so even if you just save a small amount each month and take years to build up to your bonus, you can still take advantage (unless the scheme changes!)
Some key conditions
- You need to be aged 16 or over and a UK resident with a National Insurance number
- You must be first-time buyer
- It can be used for a UK property costing £250,000 or less (£450,000 or less in London) and any mortgage
- You can only open one Help to Buy ISA
For further information including other terms and conditions, these useful links are worth researching.