The complete guide to the Help-to-Buy ISA
Fancy a £3,000 boost to your saving pot for your first home? Who doesn’t? The Help-To-Buy ISA is a government scheme that is designed to provide exactly this. Here’s a jargon free overview of how it works and who it’s suitable for.
The Help to Buy ISA – An overview
The Help to Buy ISA provides a 25% tax free boost to the savings of first time buyers. The bonus is given once a mortgage is approved and the house sale is processed. The boost is only available for homes purchased at £250,000 or under (or £450,000 or under in London).
You’ll need a minimum balance of at least £1,600 to get the bonus – and the scheme is set to run until at least 2030 (although applications are only guaranteed until December 2019).
Where can your open a Help-to-Buy ISA?
All major UK banks and building societies provide Help-To-Buy ISAs – check out the Money Saving Expert website for the latest rates.
The Help-to-Buy ISA is designed for first time buyers. It applies per applicant – which means that two first time buyers can each have their own ISA (with a boost in savings of up to £6000!). To be eligible the applicant must:
- be 16 or over
- have a valid National Insurance number
- be a UK resident
- be a first-time buyer
- not have another active cash ISA in the same tax year: If you have opened a cash ISA this tax year, it can be transferred – speak with your bank for further information
The Help-to-Buy ISA – All about paying in
The Help to Buy ISA allows for an initial deposit of £1,200 – and thereafter you can save £400 a month. You also earn as much as 2.27% interest on top of this – with this interest paid monthly (the interest rate you receive depends on the bank at which the account is held). Here’s an overview of how much bonus you would be eligible for with varying amounts in your Help-To-Buy ISA account:
AMOUNT IN HELP TO BUY ISA
AMOUNT IN HELP TO BUY ISA
£1,600 (the minimum to get bonus)
Ready to jump onto the property ladder?
Once you’ve made that big purchase and are ready to go – we’ll be right there to help. With incredibly competitive rates and a team who’ll make your move day the exciting date it should be (rather than the stressful time it shouldn’t be), we serve as a popular choice for those looking for van removal services in York.
Let’s talk – phone, email or get a quote online. Contact the Van Man York team on 07931 849 112 or 01904 375 995; email on [email protected], or visit our van removal quote page for a free, absolutely no obligation quote (the process takes around 120 seconds from beginning to end).