But, now there is a way to boost your savings for your first home by up to £3,000 with the Government’s Help to Buy ISA.
If you, or anyone you know are thinking about purchasing your first home in the near future, then you can gain a 25% bonus on your savings with the Government’s Help to Buy ISA. In the month that you open the account you can deposit up to £1,200 to which the bonus will be applied and up to £200 for every month after that. Savers can deposit more than £200 a month should they want to, but the 25% bonus will only be applied against the initial limit.
If you aged 16 or over and a first-time buyer and purchasing a house under £250,000, or if you live in London £450,000, then you qualify for the Help to Buy ISA which you can use with any mortgage.
For every £200 you deposit a month into a Help to Buy ISA the Government will add a £50 bonus when you purchase your first home. But it gets even better. If you’re saving for your dream first home with a partner you’re both allowed to use a Help to Buy ISA, which means combined you could have an extra whopping £6,000!
If you deposit less than £200 that’s okay, you’ll still earn a 25% bonus on what you have deposited, and if you miss a month altogether that’s okay too, you just won’t earn a bonus and you can carry on as normal the following month.
The minimum government bonus you can claim is £400. You’d need to have saved at least £1,600 into your HTB ISA before you’re able to receive the bonus. To receive the maximum bonus of £3,000 you’d need to have put away £12,000 into your ISA.
You will earn interest on the money held in the ISA as well so it’s important you make sure you get the best deal. So, why not join the 196,000 savers who’ve opened an account and claimed an average of £800 in government bonuses?
If you are a first-time buyer and will be purchasing a house under £250,000 or if you live in London £450,000? Are you aged 16 or over? If so then you qualify for the Help to Buy ISA which you can use with any mortgage – you’re not restricted to a Help to Buy mortgage.
However, be aware that the scheme closes to new applications on 30 November 2019. Although you’ll have until 1 December 2030 to claim the bonus, so you could even put a small amount away each month and take a few years to build up your savings and your bonus. It really is a no brainer for first-time buyers!
So, whether you or your friends and family want to start saving for your first home, contact an advisor today.
To see the list of providers participating in the scheme, please visit: https://www.helptobuy.gov.uk/help-to-buy-isa/providers-in-the-scheme/
Receive bonus: when you are close to buying your first home, you will need to instruct your solicitor or conveyancer to apply for your government bonus. Once they receive the government bonus, it will be added to the money you are putting towards your first home. The bonus must be included with the funds consolidated at the completion of the property transaction. The bonus cannot be used for the deposit due at the exchange of contracts, to pay for solicitor’s, estate agent’s fees or any other indirect costs associated with buying a home.