Help to Buy ISA: What You Need to Know

The Help to Buy ISA was a government-backed savings scheme designed to help first-time buyers save for their first home. While the scheme is now closed to new applicants, existing account holders can still benefit from it.

What Is a Help to Buy ISA?

A Help to Buy ISA is a type of Individual Savings Account where the government tops up your savings by 25%. For every £200 you save, the government adds £50, up to a maximum bonus of £3,000 on savings of £12,000.

Key Facts

• The scheme closed to new applicants on 30 November 2019
• Existing account holders can continue to save and claim the bonus until 1 December 2030
• The minimum bonus is £400 (on savings of £1,600)
• The maximum bonus is £3,000 (on savings of £12,000)
• The property must be worth £250,000 or less (£450,000 in London)

How Does It Work?

You could save up to £200 per month into your Help to Buy ISA. When you're ready to buy your first home, your solicitor or conveyancer applies for the government bonus on your behalf. The bonus is paid directly to them and used towards the purchase.

Important Considerations

The Help to Buy ISA bonus cannot be used as part of your deposit when exchanging contracts. It's applied at completion. If you're relying on the bonus to meet your deposit requirement, discuss this with your mortgage lender early in the process.

If you're a first-time buyer looking for new build homes, browse new homes on HomeClicked.