Help to Buy ISA: FAQ
Here at Hayward Moon, we are answering all your FAQ regarding the Help to Buy ISA.
So what is a Help to Buy ISA?
It's a government scheme that is aimed to help first-time buyers get onto the property ladder. Every month you can save up to £200 and the government will boost your savings in the ISA by 25% on completion of the purchase. You can claim once you have £1,600 in your ISA, meaning the government would have helped by £400. The maximum bonus you can receive is £3,000.
Who can open a Help to Buy ISA?
To qualify to open a Help to Buy ISA, you must be over 16 years of age, have a valid National Insurance number, be a UK resident and be a first-time buyer. Please see the Help to Buy ISA website for more details.
If you are buying with another person who has already owned property, but you haven't you can still open an ISA. If you are buying with another person who has also never owned property, you can both open a Help to Buy ISA. And both claim your bonuses to put towards the purchase.
When should I open a Help to Buy ISA?
If you are eligible for the Help to Buy ISA, the closing date for opening the ISA is 30th November 2019. You can continue saving into your account until 30 November 2029 but must claim your bonus by 1st December 2030.
What kind of property can I buy using the Help to Buy ISA?
The property must be in the UK, have a price of £250,000 or less (or £450,000 or less in London) and be purchased with a mortgage.
When does a legal advisor become involved?
Once you have found the property you wish to purchase, you will instruct a Solicitor or Licensed Conveyancer to act on your behalf in respect of the legal work who will also carry out the administration work for the Help to Buy ISA.
When do I receive the bonus?
You do not receive the bonus. The bonus is sent directly to your Solicitor/Licensed Conveyancer in time for completion of your purchase.
Where can I open a Help to Buy ISA?
There are many providers offering Help to Buy ISA's. Please see the Help to Buy website for a full list of providers. From there, you can do comparison searches to identify which ISA is the best for you.