Help To Buy ISAs for First Time Buyers
Following this weeks Budget Announcement by George Osborn, our Independent Financial Adviser Carly Tombs has commented on the announced ISA changes which will come into effect in Autumn 2015.
If you’re a first time buyer, you can save up to £200 a month towards your first home with a Help to Buy ISA and the government will boost the ISA by providing a £50 bonus for every £200 you save. You can receive a bonus of up to £3,000.
How the Help to Buy ISA Works
- New Accounts will be available for 4 years, but once you have opened an account there is no limit on how long you can save for.
- Accounts will be available through Banks and Building Societies from Autumn 2015 (although check with your Adviser for the best savings rates).
- You can make an initial deposit of £1,000 when you open the account, in addition to normal monthly savings.
- There is no minimum monthly deposit, but you can save up to £200 a month
- Accounts are limited to one per person rather than one per home, so those buying together can both receive a bonus.
- Only available to individuals who are 16 and over
- The bonus is available to first time buyers purchasing UK property
- Minimum bonus size of £400 per person, and maximum of £3,000
- The bonus will be available on home purchases of up to £450,000 in London and up to £250,000 outside London.
- The bonus will be paid when you buy your first home