What is a Help to Buy ISA?

What is a Help to Buy Cash ISA?

31 is now the average age of someone buying their first home but this rarely happens without substantial financial support from parents. But now there is extra help available with the Help to Buy cash ISA which is specifically designed to help first time buyers save up for their first home.

So how does this new Help to Buy Cash ISA Work?

It is available to anyone is planning to buy their first home, if you are planning to buy with a partner who also does not own a property you can both open up an individual ISA and double the benefits you can receive which are;

• Through the Help to Buy ISA the government will boost your savings by 25%. For every £200 you save you will receive £50 from the goverment 
• The maximum bonus you can receive is £3,000. However if you are buying with a partner and you both have an individual Help to Buy ISA you can receive a maximum of £6,000
• You can save £200 a month into you Help to Buy ISA but on your first month you can deposit a lump sum of £1,200
• The minimum government bonus is £400 which means you will need to have saved at £1,600 into your Help to Buy ISA
• The maximum government bonus is £3,000  which you will need to save £12,000 to receive
• You will receive your bonus when you buy your first home. Your solicitor or conveyancer will apply for it on your behalf

Who is eligible for a Help to Buy ISA?

Anyone who is over the age of sixteen and does not own a home is eligible for a Help to Buy ISA. You can use it to buy a home worth under £250,000 or £450,000 in London.

You can't use a Help to Buy ISA if you are going to let out your property or are buying abroad.

Where can I get a Help to Buy ISA?

All the mayor banks and building societies are offering Help to Buy ISA but make sure you shop around for the best deal as interest rates do vary with each lender. There is also no obligation to take out a mortgage with your Help to Buy ISA lender.

Currently Help to Buy ISA's are available with; Aldermore, Barclays,Halifax, HSBC, Lloyds Bank, Nationwide, Natwest, Santander and Virgin Money.