Property News

The cost of buying your first home and finding a place on the property ladder is always something that makes the headlines. It wasn’t long before the government decided something needed to be done and so put measures in place to make first-time buying more accessible.

Part of this process was the introduction of the Help to Buy ISA scheme, which aimed to help solve the pain point of sky high deposits. The new ISA scheme works to help you save up the amount needed for a deposit on your new home, and if you are buying a house with a partner, you can both benefit from a Help to Buy ISA account to make things move quicker.

Below, we’ll take a look at some of the key things you need to know when taking advantage of this scheme.  

Knowing when you’re eligible

There are some exceptions and T&Cs around the Help to Buy ISA scheme, such as:

• You must not own another property and you must be saving to buy your first home

• You must not have paid into a Cash ISA in the current tax year

• You must be over the age of 16

These terms help to keep these ISAs exclusively to those that are buying their very first home. There is some flexibility with these terms, but it is always worth talking to an advisor in your local bank, to ensure you are completely eligible.  

Another area you have to check is whether the type of property you are looking to purchase is eligible. To determine whether your Help to Buy ISA can be used on your potential new home, here are a few of the terms it must meet:

• Your home must be in the UK

• Under £250,000 (£450,000 in London)

• Must be the only home you own

• A mortgage must be used to pay for the property

If you plan to purchase a property that fits the above criteria, then you will be able to use your Help to Buy ISA to pay for the deposit on your future home.  

How the help to buy ISA can benefit you

When you have saved a minimum of £1,200 in your Help to Buy ISA, you’ll then be eligible for the government rewards that the Help to Buy ISA is known for.

This account will allow the government to boost your savings by up to 25%, meaning that if you save the full amount of your deposit with the Help to Buy ISA, you could receive up to £3,000 on top of your savings.

Property solicitors, Ellison Thomas, are on a mission to make the house buying process easier than ever for first-time buyers, which is why they have created a useful infographic to guide you through the Help to Buy ISA scheme. Click here to check your eligibility.