Buyers saving for their first home can save money for a deposit into a Help to Buy ISA (HTB ISA).
The government will then boost buyer’s savings by 25%. So, for every £200 saved a buyer can receive a government bonus of £50. The maximum government bonus is £3,000.
Open: HTB ISA are available from a range of banks and building societies. Accounts are available to each first time buyer, not each household. This means that two applicants planning to purchase a property together could receive a government bonus of up to £6,000 towards their first home.
Save: Buyers can save up to a maximum of £200 a month into their HTB ISA. To kick-start an account, in the first month, a buyer can deposit a lump sum of up to £1,200. The minimum government bonus is £400, meaning that a buyer needs to have saved at least £1,600 into a HTB ISA before they can claim a bonus. The maximum government bonus is £3,000 – to receive this amount a buyer will have needed to have saved £12,000.
Receive bonus: Your solicitor or conveyancer will apply for the government bonus. Once they receive the government bonus, it will be added to the money you are putting towards your first home.
