Some people may opt to open a Help to Buy ISA in a bid to get on a housing ladder. These saving accounts see savings being topped up by the government, by 25 per cent (up to £3,000). This additional money does not need to be repaid. A Help to Buy ISA can be opened per person, meaning if an individual is purchasing with someone else, then they too can get a Help to Buy ISA.
There are some rules of eligibility, and this includes that the home must be where one intends to live, and be the only home they own.
The property should also have a purchase price of up to £250,000 – or a maximum of £450,000 in London.
For a Help to Buy ISA, the first payment can be as much as £1,200.
Subsequent payments can be up to £200 per month.
An individual’s solicitor or conveyancer will apply for the extra 25 per cent bonus, when they buy a property.
Anyone who is 16 or older and is a first-time buyer may open a Help to Buy ISA.
Should a person be interested in opening this type of account, they may want to act soon.
That’s because the government has said that Help to Buy ISAs will only be available for a limited amount of time.
The government’s Help to Buy website states that it’s only possibly to open this type of ISA until November 30, 2019.
At the time of writing, this is just shy of two months away.
Guidance on the website states: “After that date they won’t be available to new savers anymore – but if you opened your Help to Buy: ISA before then you can keep saving into your account until 30 November 2029 when accounts will close to additional contributions.”