Help to Buy ISAs were announced by the Chancellor of the Exchequer in his budget in March 2015 and they are now available from a number of banks and building societies. What you need to know:
1. Help to Buy ISAs are available to any UK resident aged over 16 and buying a property in the UK for the first time.
2. The cost of the home must not exceed £250,000, except in London where the limit is £450,000.
3. The scheme is available for new applicants from 01 December 2015 until December 2019.
4. Couples are treated separately and so each individual can open their own Help to Buy ISA. This could lead to a bonus of up to £6,000 when buying your first home together!
5. The ISA can be used with any mortgage, it does not have to be a Help to Buy Mortgage (although it can be) and it cannot be a buy-to-let mortgage.
6. The ISA can be combined with any other savings to make up the deposit.
7. In the first month you can save up to £1,200 and every month after that you can contribute any amount up to a maximum of £200.
8. You can only have one Help to Buy ISA per person and you cannot contribute to both the Help to Buy ISA and a cash ISA in the same tax year.
9. The 25% bonus will be paid via your Solicitors when you buy your first home.
10. If you decide not to buy a property then you can take the money out and use the funds how you wish, you will just miss out on the bonus.
THE GOOD NEWS – When you come to use the ISA to buy your first home, the total (including any interest accrued) will have 25% added to it, with two exceptions:
a) You need to have at least £1,600 saved to qualify for the bonus.
b) The maximum bonus available is £3,000 (on savings of £12,000) per ISA.
The bonus scheme is set to run until December 2030, so set one up now!
If this is something you wish to discuss further, please contact us now to speak with someone in our conveyancing department 023 8063 3225 or email: email@example.com.