Help To Buy ISA
Published 6 June 2016
The ‘Help to Buy ISA’ is a new Government funded scheme giving first-time buyers the opportunity to earn a 25% bonus on top of their current savings towards their first home.
The Help to Buy scheme is one of many incentives introduced by the Government to help first time buyers move away from renting and on to the property ladder. Indeed recent Stamp Duty charges on those planning to purchase 2nd homes for buy-to-rent purposes, were essentially introduced to help free up housing for first time buyers.
This latest scheme allows potential buyers to save as normal, with the Government adding an extra bonus on top depending on how much you save.
How do I register?
To partake in this scheme, you need to open a Help to Buy ISA with any participating bank or building society. The scheme allows you to lodge an initial deposit of £1200, with monthly deposits of £200 thereafter. After you have saved £1600, you then become eligible for the Help to Buy bonus.
If you save the minimum of £200 a month, the Government will essentially give you an extra £50 each month. If you decide to only save the required £1600 you will receive a £400 bonus. If you wish to save the maximum amount of £12,000 then your bonus will rise to an impressive £3,000.
What other benefits are there?
If you plan to purchase your first house along with you partner, then both of can open your own separate Help to Buy ISAs, thereby essentially doubling your overall bonus.
The scheme will also be available until 2019, and you can keep saving into it until 2030. Whether you plan to buy quickly, or want to look around for a while, the scheme will offer a bonus for everyone.
I am ready to buy my house – what happens next?
Whenever you decide to buy your house, you simply close the ISA and transfer the money. The money must be transferred to your Solicitor, who will then claim the bonus and complete the purchase on your behalf. You must ensure that your chosen Solicitor is signed up to the HTB scheme.
How can MKB Law help?
MKB Law are officially registered with the Help To Buy ISA scheme, and have already helped a number of first-time buyers successfully claim their bonus. As one of the top conveyancing solicitors in Belfast, MKB Law can ensure that the purchase of your property is undertaken in a timely and efficient manner.
Connie Keating, from MKB Law’s Conveyancing team comments, “The Help To Buy scheme is a not only great way for potential first time buyers to put money aside for their first property, but it also allows them to earn a tax-free bonus on top of that.
If you are a first time buyer, please get in contact with myself or a member of the Conveyancing team here at MKB Law. We will assist you with all stages of your house purchase and claim your Help To Buy bonus from the Government.”