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Help to Buy ISA

Posted on Monday, 7th December 2015 by

The Help to Buy ISA was launched in December 2015 and is a scheme which the government has introduced for first time buyers. The government have stated that too many families are currently renting and as a result have introduced this scheme to allow first time buyers to save enough money for a deposit.

first time buyer

 

 

 

 

 

How does it compare to a normal ISA?

 

As with normal ISA’s , the Help to Buy ISA is being offered by various banks and building societies – who offer competitive rates of interest – for example Halifax are currently offering a 4% annual rate.

The amount which has been saved will be ‘topped up’ by a government bonus of up to 25%, which totals a maximum of £3,000, at the point of house purchase.

Do you qualify for an ISA?

 

In order to qualify the applicant must be a UK resident, 16 or over and buying a property In the UK for the first time. However, you’re not eligible for this if you wish to buy for the buy-to-let market. Additionally the value of the house must not exceed £250,000 unless the property is in London where the limit is £450,000.

The finer details

 

A maximum monthly deposit of £200 is allowed. Once the balance reaches £12,000 then the saver is entitled to government support of the maximum £3,000. A limitation to using such an ISA is an individual is not able to open any additionals ISA’s but are able to continue holding a current one.

The scheme will be closed to new entrants from 30th November 2019.

Talk to our legal team

The information provided in all of our blogs reflects only a narrative of some elements to consider on the topic. The blogs do not contain considered legal advice and should not be relied upon as advice. Please see our website terms and conditions for full details of our disclaimer. If you are interested in obtaining advice, please contact one of our lawyers who will be happy and able to advise you on your own particular circumstances.

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Douglas Wemyss - Commercial Property
Douglas Wemyss - Commercial Property
douglas.wemyss@ehlsolicitors.co.uk 0116 266 5394
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