Government Cash up to £3,000 to Buy Your First Home.
Government Cash up to £3,000 to Buy Your First Home
If you’re a first–time buyer wanting to buy your own place, then we should be talking about the Help to Buy ISA.
The Help to Buy ISA, unveiled by the government back in 2015, aims to help people get their feet on the property ladder at a time when many find it a struggle due to high property costs, fees and big deposits. At Financial Foresight we can help assure and coach you along the way, many young First time Buyers feel owning your own home is beyond their reach and they’ll be stuck flat sharing or living with their parents until they are in their 40s.
The good news is! The Help to Buy ISA is a new way to take the sting out of some of the costs of buying. We have outlined the Key Facts of a Help to Buy ISA and how they will work for you;
- Help to Buy ISAs are a type of Cash ISA and have been available from banks and building societies since 1st December 2015.
- There is no minimum monthly level of savings – although providers can choose to impose one. You can save a maximum initial deposit of £1,200 and then monthly deposits of £200.
- For Example!: If you save the maximum of £12,000 into a Help to Buy ISA, the government bonus will boost your total savings to £15,000 – that’s a 25% boost for your savings and a £50 bonus for every £200 you save. That’s on top of the tax–free interest you earn on those savings at the rate paid by your building society or bank
- The minimum bonus available is £400 per person on savings of £3,000; the maximum is £3,000 per person on the full £12,000
- Any bonus is only paid when you use your savings to buy your first home at £250,000, as long as you’re over 16
- Once you have opened an account there’s no limit on how you long you can save for. If you and your partner are both saving for your first home, you both can open a Help to Buy ISA accounts and you both will receive the 25% bonus.
- You can take your money out to buy a property when you need to – it’s not locked away, and most importantly any Interest earned is free of tax.
If you’re a First Time Buyer in need of Expert Mortgage Advice, book a free, no obligation consultation with Financial Foresight today.
