In late 2015, the Government introduced the Help to Buy ISA, aimed at helping first-time buyers onto the property ladder.
The Help to Buy ISA is available through many banks and building societies including Halifax, HSBC, Nationwide, NatWest and Barclays to name just a few.
First time buyers can save up to £200 each month in a Help to Buy ISA and will receive a 25% bonus of the amount saved. So, for every £200 saved the Government will contribute a maximum of £50 per month. The total contribution from the Government will be £3,000 - in order to achieve this an individual would need to save £12,000. When you are ready to buy your first home the bonus will be calculated and paid through your solicitor.
To qualify for the Help to Buy ISA you must meet the following criteria:
- Have a Valid National Insurance Number
- Be a UK resident
- Be at least 16 years of age
- Must not have opened another cash ISA in the same tax year
- Be a first time buyer (defined as someone who does not own and has never owned a property anywhere in the world.)
First time buyers can open a Help to Buy ISA until the 30th of November 2019. Applications will close after this date but those already registered can continue saving towards their first home.
Any bonuses must be claimed for by the 1st of December 2030.