Are you a first time Buyer? Here is a tip you do not want to miss when saving for a deposit.
Saving to get on the housing ladder is a feat in itself but with the introduction of Help to Buy ISA’s the Government are helping first time buyers to make that step a little bit easier. For every £200 you save, the government will provide an extra £50. The maximum bonus is £3000.
If you are a first time buyer, aged over 16 with a valid National Insurance number and own no other property in the world, you would be eligible to open a Help to Buy ISA.
Interested? The ISA is available in branch and online, at a range of banks and building societies and is becoming an increasingly popular product. If you are purchasing with a partner you can each take out an ISA.
To really boost your account, in your first month you can deposit up to £1,200 (or transfer this from your previous ISA) and thereafter £200 a month. The minimum bonus available is £400; therefore you need to have saved at least £1,600 before you can claim the bonus.
Once you have saved the required amount and have had your offer accepted on the property of your dreams, you need to instruct a Solicitor to guide you through the house buying process. Your new home must be worth under £250,000 (or £450,000 in London) be in the UK and must be bought to be lived in by you, not by a tenant. The Help to Buy ISA can be combined with other First Time Buyer initiatives run by the Government. From 06 April 2017 a new incentive called The Lifetime ISA will be launched for first time buyers – watch our website for more details.
Your Solicitor must claim the bonus for you. The bonus cannot be used for the 10% deposit but can be used to pay the balance cost of your home at completion.
You must open an ISA by 30th November 2019 and if opened before that date, you will need to claim your bonus by 1st December 2030, so plenty of time to save! For more information on Help to Buy ISA’s, shared ownership or other first time buyer initiatives, please contact me at Battens Solicitors on 01935 811323 or email: email@example.com
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