Help to Buy ISA. Everything you need to know

Fri 23 Nov 2018

 

When will they be available?

Help to Buy ISAs have been available since December 1, 2015.

How much can I pay in?

You can open a Help to Buy ISA with a maximum deposit of £1,000, and then pay up to £200 a month into the account.

What will I earn?

The government has promised to top up savings by 25%, up to a maximum of £3,000.

You’ll also earn the standard interest rate offered with the ISA. This will vary depending on who provides your Help to Buy ISA.

How is the bonus paid?

The bonus money will go straight to your mortgage provider when you buy the house.

Is there a minimum I need to save?

The minimum you can save to qualify for the bonus is £1,600. That would give you £400.

How long will it take to get the money?

To get the full amount of £3,000, it would take you four and a half years to save £12,000, assuming you pay the £1,000 deposit and the maximum £200 every month.

How many can I have?

You will only be able to take out one Help to Buy ISA per person, but this isn’t per property. This means joint buyers can pool their cash and bonuses on the same house.

What if I already have an ISA?

If you have paid into any other ISA in the financial year and you want to open the Help to Buy ISA, you can’t pay any money into it. That means anyone who has made a payment into an ISA since April 6 2017 will have to wait until April 2018.

When does the offer end?

They’ll be available for four years after they are first available, so until autumn 2019. You can keep saving in them for longer though.

Is there a cap on the value of the property?

Yes, in London it can be used on any home worth under £450,000. Elsewhere in the country the home can’t cost more than £250,000. The property must be in the UK.

Do I have to use it on a Help to Buy property?

No, you’ll get the bonus on any mortgage.

Can I use it on a buy-to-let property?

No, it’s only for first time buyers who want to live in the property, not rent it out.

What can I do now?

You can start saving for the £1,000 deposit. Aim to put it in an account with the highest interest rate.

What else do I need to know?

Buying a house isn’t just saving for a deposit and enough to make your monthly mortgage repayments. Mortgage lenders will want you to prove you can afford them – now and in the future.

They’ll look at how you would cope financially if interest rates rose or if you had a life changing event such as having children or being made redundant. They’ll also look at your finances – and how you spend your money – to get a sense of how affordable your repayments will be.

 

All information accurate at time of publication

This article is provided by the Money Advice Service.

Content provided by OnTheMarket.com is for information purposes only. Independent and professional advice should be taken before buying, selling, letting or renting property, or buying financial products.

 

See www.onthemarket.com/newandexclusive. Agents specify exclusivity and are committed to accuracy under terms of use.

"Thank you so much for all the efforts made on our behalf in the sale of Lower Barn, Shotteswell. We appreciate very much the work you put in to get things moving. We were extremely satisfied with every part of our sale and once again Anker & Partners have given us a first class service. The purchase of Lower Barn was through your firm and you have justified our coming back to you for our sale. Many thanks to you and all the team. "
Alma and Bruce Teuten - Vendors

News Archive

November 2018

Help to Buy ISA. Everything you need to know

October 2018

Press Release

September 2018

Five tips to help you feel at home in a new property

August 2018

Prioritise your search with Keyword Sort

June 2018

GrangeFest 2018

Why you should check your credit score before searching for a new home

April 2018

Overseas Homes

March 2018

Property viewings: 9 tips for finding 'the one'

Conveyancing: Advice For Homebuyers

February 2018

Mortgage alert! Top mortgage rates have already started disappearing... why you must act now to beat £500 bill hike

February 2018

Seven top tips for today’s first time buyers

December 2017

Happy New Year!

Merry Christmas!

Christmas Opening Hours 2017

Unwrap your perfect home this Christmas

November 2017

Stamp duty scrapped on homes up to £300,000 for first time buyers

Top tips for dealing with the Bank of England’s 0.25% base interest rate rise

February 2018

Top tips for reducing condensation

July 2017

Broughton Castle Sportive 2017

Bodfest 2017

May 2017

The London & Country Property Show 2017 - Update

April 2017

The London & Country Property Show 2017

March 2017

On The Markets guide to house price indices

Plans for a £50 million waterfront leisure development in the heart of Banbury have be unveiled.

February 2017

Is your home in an area prone to flooding? What to do if disaster strikes?

January 2017

House prices: Whats in store for 2017?

December 2016

Merry Christmas and Happy New Year

Christmas Opening Hours

November 2016

Hugh Grants Former Bachelor Pad For Sale

Sales to first time buyers at highest level on record

2016 - Autumn Statement: Lettings agent fees to be banned

Tories pledge to build 40,000 more affordable homes in Autumn Statement 2016

Winter-Proof Your Home SOS

October 2016

Spamalot - Banbury Operatic Society - Tickets on Sale

Keeping your home damp free

What The Bank Of England Base Rate Cut Means For Mortgage Holders

September 2016

Moving to a new area? Top tips to help ease moving house

August 2016

Buying or selling a property with asbestos?

July 2016

BBC Packing Tips

3 Ways RICS Home Surveys Pay For Themselves

June 2016

Buying or renting a listed building? Everything you need to know

10 Secrets To Achieving Show Home Style

May 2016

Buying Or Selling A Property Affected By Japanese Knotweed?

Can Overpaying Your Mortgage Save You Money?

All You Need To Know About The Lifetime ISA

5 Ways To Protect Your Home From Flooding

April 2016

One in four of today’s first-time buyers will be paying off mortgages in retirement

Anker and Partners sponsored football kit being re-used in Sierra Leone!

March 2016

Oxfordshire Villages The Sibfords and Great Tew make it into top 40 best villages in Britain

February 2016

Sky Dive to Raise Funds for the Blue Cross

Is it cheaper to rent or buy a home?

Help to buy scheme

January 2016

Will UK house prices continue to rise in 2016?

Supporting Dogs for Good

UK Stamp Duty - What changes to expect in 2016?

April 2009

Factsheet: Mortgages