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. https://www.mortgageadvicebureau.com/mortgage-advisers/commercial-road-swindon
ENDS
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Visit: https://www.mortgageadvicebureau.com/mortgage-advisers/commercial-road-swindon
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