What is a Help to Buy ISA?
A Help to Buy ISA is a government scheme to help boost savings towards a first home with a bonus of 25%. So for every £200 you save you will receive a bonus of £50 up to a maximum of £3000.
The Help to Buy ISA can be set up through a bank or building society and is for each person buying the home. So if you are buying a property with a partner you could receive a bonus of £6000.
The minimum government bonus is £400 therefore you would need to save £1600 into your Help to Buy Isa before you can claim your bonus.
Who is Eligible?
- You have to be 16 or over.
- You must have a valid National Insurance Number
- Be a UK resident
- Be a First Time Buyer and don't own a home anywhere else
- Do not have an active Cash Isa in the same tax year
Once you are close to purchasing your house your Solicitor will request the bonus to consolidate into the funds to purchase your new home. The bonus can't be used for a deposit, pay solicitors fees, Estate agents fees or any other indirect costs relating to buying a new home.
For more information please visit www.helptobuy.gov.uk.