15 December 2015

Help to Buy ISA scheme: explained

We provide a basic overview of the Government's Help to Buy ISA scheme, outlining the various conditions that need to be met in order to qualify.

If you are hoping to take that first step onto the UK property ladder, have you considered utilising the new 'Help to Buy’ ISA to obtain £3,000 from the Government?

These new ISA accounts allow first time buyers to squirrel away up to £200 per month, however in the first month a deposit of £1,200 is permitted, and the government will match the savings with a 25% ‘bonus’, up to a maximum of £3,000.

The government will add the bonus to your own savings at the point you come to buy your first home. The government bonus must be applied for by your participating solicitor or conveyancer, so it is important that you check they are registered with the government scheme before proceeding.

There are of course numerous conditions attached to this ISA:

The individual must:

  • Be aged 16 or over
  • Have a valid National Insurance number
  • Be a UK resident
  • Be a first time buyer

The property being purchased must:

  • Be located in the UK
  • Cost no more than £250,000 (or no more than £450,000 if you are buying in London)
  • Not be a second home or a buy-to-let property
  • Not be rented out after you buy it
  • Be purchased with a mortgage