First time buyers have two weeks to open a Help to Buy: ISA; the savings account which helps first time buyers to save more through a 25% top-up from the government.

As most of us already know, getting a foot onto the property ladder is a huge step and it isn’t easy.

The usual first step to getting on the property ladder is saving your deposit. Until the end of November, the government are offering a helping hand for people trying to save for their first property, so it is a good idea to act fast and open a Help to Buy: ISA.

The Help to Buy: ISA gives your savings account a boost when it comes to purchasing your first home. Surprisingly, lots of first time buyers are unaware of this incentive. Which is why I am sharing this tip with you today.

How the Help to Buy: ISA works

If you are a first time buyer and you open a Help to Buy: ISA (which you can open through a range of banks and building societies) the government will top-up your savings by a massive 25%.

So, for every £200 you save, you will receive a bonus of £50. This government bonus can go all the way up to £3,000.

The good news is, the offer is avaliable to each first-time buyer, not every transaction. This means that if you are planning to buy with a partner, you could receive a bonus of up to £6,000.

Claiming your bonus 

Once you have chosen your first home, you will need to instruct your solicitor or conveyancer to apply for your government bonus. Once they receive the money from the government, it will be added to the money you are putting towards your first property.

Forward thinking 

If you are not sure when you’ll be purchasing your first property, or don’t think you’ll be buying for a few years at least, it is still worth taking advantage of this government scheme and opening a Help to Buy: ISA account before the deadline (30th November). Once you have opened the account, you have until December 2030 to claim your government bonus.

The finer details

Anyone over the age of 16 can open an account, as long as you are a first time buyer.

In your first month of opening your Help to Buy: ISA account, you can deposit a lump sum of up to £1,200. The minimum government bonus is £400 which means that a minimum of £1,600 needs to be saved before you can claim.

The maximum bonus you can receive is £3,000 – to get this bonus you will need to save £12,000.

Again, the offer ends on 30th November so act NOW to kick start your savings.

If you have any questions about how the Help to Buy: ISA could help you or if you’re thinking of buying your first home, I’d be delighted to help.

We are always avaliable to chat on 01279 600 567.

Thanks for reading & happy saving !