Help to Buy ISA is now closed
The Help to Buy ISA has now closed to new applications, but if you already have an account, don’t worry, you can keep saving into it until 30th November 2029 but you must claim your bonus before 1st December 2030.
What is the Help to Buy ISA?
Introduced back in 2015, the Help to Buy ISA is essentially a savings account to buy your first home. In the first month of opening the account you can save a lump sum of up to £1,200. Following this, the maximum you can save each month is £200 and the government will then boost your savings by 25%. So, if you save £200 a month, the government will contribute with a £50 bonus.
What’s the money used for?
The money has to be used to buy your first house. Therefore, you have to have never bought a property before, in the UK or anywhere else in the world, in order to qualify. You can buy a house up to the value of £250,000 outside of London, or £450,000 inside of London.
After 30th November 2019
You won’t be able to open a new ISA account, but if you already have one, you can keep it open and still pay into it until November 2029. You can withdraw your money out at anytime, as long as it’s before 1st December 2030.
How do I access the money when I need it?
Once you’re close to exchanging contracts, you need to ask your solicitor, or conveyancer, to apply for the money in your Help to Buy ISA. The money from this account will then be added to the rest of the money you’re using to buy a house with. The bonus money will only go through on completion of the house sale.
How do I open a Help to Buy ISA?
Unfortunately, the scheme has now closed. However, there is still the Lifetime ISA which lets you save up to £4,000 a year and receive a 25% bonus from the government. Read more about the Lifetime ISA from our new homes manager, James Chidgey.
If you can’t find the answers to questions here, we’ve written a list of frequently asked questions about the Help to Buy ISA. Alternatively, please feel free to request a callback and our friendly team will be in touch.
Because we play by the book we want to tell you that…
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.