19/02/2016
People saving for their first home have received a boost from the Government with a new ISA designed to help first time buyers get on the property ladder.
The Help to Buy ISA, which was introduced by the Government on the 1st December last year, will enhance people’s savings by 25%.
Aside from the cash incentive, the ISA is available on an individual basis so people buying a home together can benefit from both of them opening an ISA. The only criteria for anyone setting the ISA up is that they are a first time buyer.
An initial deposit of up to £1,200 is required to open the ISA, which is being offered by a range of banks and building societies, followed by monthly deposits of up to £200.
While the maximum bonus the Government has committed to is £3,000, savers will only need to have a balance of £1,600 before they become eligible for the minimum bonus which the Government has set at £400. This can be achieved in as little as three months from the date of opening the ISA.
Russell & Russell is registered as a member of the Help to Buy ISA panel. We have already acted for clients who set up their ISAs and have just had their £400 bonuses approved. If you’re looking to buy your first home through a Help to Buy ISA, we can help with your bonus application and ensuring the property being purchased meets the eligibility criteria.
Please note that this article is meant as general guidance and not intended as legal or professional advice. Updates to the law may have changed since this article was published.