If you are planning to use a Help to Buy ISA to purchase your first property, this guide is for you.
What is the Help to Buy ISA scheme?
The Help to Buy ISA scheme was introduced to help individuals save for their first home. If you save into a Help to Buy ISA, the Government will also pay into it by way of a ‘bonus’ and contribute 25% of what you pay in.
To illustrate, if you save £200 per month (the maximum amount allowed under this scheme), the Government will pay a monthly bonus of £50 on top of that amount. However, please note that the maximum amount the Government will pay in total is a £3,000 bonus. The minimum amount you have to save is £1,600. If you save this amount, the Government will pay the minimum bonus of £400.
If you are interested in setting up a Help to Buy ISA, you should check the HM Government’s website for a list of the Banks and Building Societies offering this scheme.
Please also note that though the Help to Buy ISA scheme is planned to run until 1st December 2030, the ISA has to be opened between the period 1st December 2015 and December 2019.
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