Get up to £3,000 for FREE to Buy Your First Home
Get up to £3,000 for FREE to Buy Your First Home
This is a new scheme, designed to help first-time buyers get on the property ladder.

If you’re looking to buy your first home, the government’s ‘Help to Buy’ ISA may be a good way for you to save up a deposit. Senior accountant, Hayley Robins, takes you through the key things you need to know about this scheme to find out if it is right for you.

Hayley Robins blogs:

The governments announced the ‘Help to Buy’ ISA back in the summer, but the account finally launches on 01 December 2015.

This is a new scheme, designed to help first-time buyers get on the property ladder. As the account is an ISA, savers can only pay in up to their ISA limit each year (being £15,240 for 2015/16) and any interest earned is tax-free. However, this ISA is extra special, unlike a bog standard ISA the government will pay savers a bonus of 25% of the account balance when the account is drawn down and the funds are used to buy a home.

Most of the high-street banks will be offering this new account, but there are a few T’s and C’s to take note of before you open an account.

Here are the important things you need to know:

  • New accounts will be available for 4 years, but once you have opened an account you can save for a long as necessary (no end date for the ISA’s have been announced at this point).
  • The account is for over 16’s only.
  • There is no minimum monthly amount you must save, but there is a maximum of £200 per month.
  • When you first open the account you can inject a one-off amount of £1,000.
  • The accounts are ‘per person’ rather than ‘per home’ – so if you are buying with someone else you can both benefit from a bonus.
  • There is a minimum bonus of £400 and a maximum bonus of £3,000.
  • The bonus is only available on house purchases up to £250,000 (£450,000 in London).
  • The bonus is only paid out when you buy your first home. Your solicitor or conveyancer will apply and draw-down the bonus.

If you have any questions about mortgages or how you can make more of your savings to purchase a property, please do get in touch on 01872 300232 or email us at hello@hivebusiness.co.uk.

The information contained in this article is based on the opinion of Hive Business and does not constitute formal tax advice. Any tax outcomes will be based on individual circumstances, tax legislation and regulation, which are subject to change in the future. You should seek specific advice before embarking on any course of action. Hive Business does not provide regulated Financial Advice, including advice on investment, insurance or lending products or their suitability for you. This article is provided for information only and does not constitute, and should not be interpreted as, investment advice or a recommendation to buy, sell or otherwise transact, or not transact, in any investment including Bitcoin and other crypto. Any use you wish to make of any information contained within this article is, therefore, entirely at your own risk.

By Hayley Robins Senior Accountant
If you have any questions or comments about this article, please get in touch.
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