First time buyers are getting a lot of help at the moment, and I think it is a great thing as property prices are spiralling upwards. One of the schemes implemented by the Government is the Help to Buy ISA. Basically you save and the Government will give you a bonus to go towards your first property.
The plan behind this scheme is to help increase first time buyer’s savings. For every £200 you save the Government will give you 25% back (£50), up to a maximum of £3,000.
If you are a first time buyer you should definitely open a Help to Buy ISA with your bank – get involved with receiving free money towards your investment.
In your first month you can deposit £1,200 and then thereafter you can save up to £200 a month. The minimum bonus you can get is £400, so you will need to have saved a minimum of £1,600 into your ISA to be eligible to receive a grant. Even if you can save the money quicker, keep depositing £200 into this ISA – every little contribution means more money towards your property.
You will get your Government bonus when you are close to finishing your property purchase. At this point you will need to tell your ISA provider that you are buying a property and they will close your ISA and issue you a closing statement. You then give this statement to your solicitor and they will apply for your bonus – these funds will then go towards your property purchase.
You aren’t tied into leaving your money in the ISA, you can withdraw your money at any time. However you must remember that if you want to top your savings back up you are still only limited to £200 per month.
Applications for a Help to Buy ISA are open up until the 30th November 2019 and then can claim your bonus up until 1st December 2030.
I know that from the outset it looks like it will take a long time to get the £3,000 bonus (4.5 years minimum saving time). However this ISA gives you the incentive to start saving and if you are earning £50 for every £200 you are depositing then that is still a fantastic bonus.
If you want more information on this (and you should!) visit Help to Buy or your bank and get this set up ASAP.
For more information on First Time Buyer Schemes and all things property don’t forget to keep checking in with NC Real Estate and on our Facebook page.
NC
(img source – size modified for NC Real Estate)
