Help to Buy ISA
The Help to Buy ISA can help you save towards the deposit on your first home. Under this scheme the government will top up your savings by 25%. For every £200 you save each month, the government will contribute £50 up to a maximum of £3,000 on savings of £12,000. The maximum amount you can pay into your Help to Buy Isa each month is £200 but, as a bonus, when you first open the account you're allowed to make an additional contribution of £1,000, meaning you can save £1,200 in the first month.
Unlike the other Help to Buy schemes the ISA is only available for first-time buyers. So you won’t be able to open one if you currently own a property or have owned one in the past. The government bonus is paid only when you buy a property, so you won’t get the 25% top-up if you use the money for something else. You can use the Help to Buy ISA to purchase a property worth up to £250,000 - or, if you're buying in London, £450,000. The money you save in the Help to Buy ISA isn’t limited to new build homes.
How do I get a Help to Buy Isa?
To be eligible for a Help to Buy ISA you need to be a first-time buyer. It’s worth speaking with your existing bank or your local building society to see if they back the scheme and who can offer you the best overall rate.