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The Help to Buy ISA

As you may be aware, the Government have introduced an incentive for first Time Buyers.  The Help to Buy ISA has been created to offer a boost to First Time Buyers saving to buy their first home.  First Time Buyers who set up the Help to Buy ISA and pay in savings to be used towards a deposit to purchase a first property, will have their savings boosted by 25% direct from the Government, ie; for every £500 you save the Government will increase the savings at a bonus of £125.  The maximum Government bonus that can be paid is £3,000.

Obviously this is a huge incentive to First Time Buyers and understandably many First Time Buyers are rushing to set up the ISA.  Please note however the following points:-

  1. You need to have saved at least £1,600 in the Help to Buy ISA before you can claim the minimum bonus of £400.
  2. To open the account, the maximum deposit you can pay into the ISA is £1,200 you can then pay in £200 per month into the ISA thereafter.
  3. It will be the Solicitor acting for you in your purchase of the property who will close the ISA and apply for the Government bonus.  The application process can take some time and as such, it is important you notify your Solicitor of the existence of the Help to Buy ISA when confirming initial instructions.
  4. Your Solicitor will charge additional fees of up to £50 plus VAT to deal with the Help to Buy ISA on your behalf.

Should you require any further information relating to the Help to Buy ISA guidance can be found at www.helptobuy.gov.uk/help-to-buy-isa

If you are purchasing a property and have put a Help to Buy ISA in place do not hesitate to contact the Conveyancing Team at Clough & Willis Solicitors on 01204 709959 who will be able to provide you with a full quote for your house purchase, together with the process involved in claiming the bonus from the Government.

If you would like to find out more about Clough & Willis Solicitors please visit our website www.clough-willis.co.uk, find us on Facebook by searching for “Clough & Willis Solicitors” or connect with us on Twitter through “@BurySolicitor”.

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