The government’s Help to Buy ISA is due to close on 30th November 2019, but if you open an account up before this date, you can keep it open and still save for another 10 years. You can open it up today, and as long as you put some money into it (it can be as little as £1) the account will be ready and waiting for you, as soon as you’re able to start saving.
What is the Help to Buy ISA?
Introduced back in 2015, the Help to Buy ISA is essentially a savings account to buy your first home. In the first month of opening the account you can save a lump sum of up to £1,200. Following this, the maximum you can save each month is £200 and the government will then boost your savings by 25%. So, if you save £200 a month, the government will contribute with a £50 bonus.
What’s the money used for?
The money has to be used to buy your first house. Therefore, you have to have never bought a property before, in the UK or anywhere else in the world, in order to qualify. You can buy a house up to the value of £250,000 outside of London, or £450,000 inside of London.
After 30th November 2019
You won’t be able to open a new ISA account, but if you already have one, you can keep it open and still pay into it until November 2029. You can withdraw your money out at anytime, as long as it’s before 1st December 2030.
How do I access the money when I need it?
Once you’re close to exchanging contracts, you need to ask your solicitor, or conveyancer, to apply for the money in your Help to Buy ISA. The money from this account will then be added to the rest of the money you’re using to buy a house with. The bonus money will only go through on completion of the house sale.
How do I open a Help to Buy ISA?
Contact your bank or building society and ask if you can open up a Help to Buy ISA with them, but remember, you only have until 30th November!
Don’t forget there’s also the Lifetime ISA which lets you save up to £4,000 a year and receive a 25% bonus from the government.
If you can’t find the answers to your questions here, please feel free to get in touch with our friendly team.