Are you thinking of buying a house? Are you saving for a deposit on your first house purchase? If the answer is, yes, then the government’s Help to Buy: ISA Scheme may be an opportunity for you to top up your savings with a bonus up to a maximum of £3,000.00.
The scheme came into effect on 1 December 2015 and is aimed at you:-
- if you do not already own a home and have never owned any interest in land anywhere in the world;
- the house you plan to buy is less than £250,000.00; and
- you will require a mortgage to help with your purchase.
One person cannot open more than 1 of these ISAs, but 2 people buying a home can each have an ISA and lump their savings and bonuses together towards the purchase price.
What is the catch? There are rules on how much you can deposit; the minimum period the ISA Scheme must be open before claiming a bonus and obviously the balance in the ISA and the bonus must be used for your purchase. However, it is otherwise like a standard ISA. The more you save the more bonus you are eligible for, up to a maximum of £3,000.00 from the government to top up the value of your savings.
As with all investments “terms and conditions apply” so we recommend that you seek advice about the Help to Buy ISA from a financial adviser before deciding if this scheme is right for you. You can also find out more by following this link to the government website https://www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work/.