First-time buyers need to move quickly to make the most of the government’s Help to Buy ISA scheme.
The Government-backed Help to Buy ISA scheme, designed to help first-time buyers save for a deposit for a home, is coming to an end on November 30.
The plan which adds 25% to your savings, up to a maximum of £3,000 on savings of £12,000, will no longer be available to new savers after this date.
Introduced in 2015, to help first-time buyers get on the property ladder, the Help to Buy: ISA is available from a range of banks, building societies and is open to each first-time buyer, not per household. This means that if you are planning to buy with your partner, for example, you could receive a government bonus of up to £6,000 towards your first home.
In the first month, savers can deposit £1,200 and you need to have saved £1,600 before you qualify for your government bonus (which would amount to £400).
Once you have found your dream home, simply instruct your solicitor to apply for the government bonus. Once received, the cash will then be added to your home-buying funds. According to official information, 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”.
For more information, visit: https://www.helptobuy.gov.uk
