Final reminder to sign up for Help to Buy
The Help to Buy ISA scheme will close to new savers after 30 November 2019. If you are interested in signing up to the scheme you need to do so ASAP and certainly before midnight on 30 November 2019. If you are a first-time buyer and planning to buy a property in the short to medium term, you should think about whether you (or perhaps your children) would benefit from this scheme.
Under the scheme you can claim a Government bonus of 25% on monthly savings of up to £200 towards a first home. The bonus translates to an extra £50 added to every £200 saved up to a maximum Government contribution of £3,000 on £12,000 worth of savings. You need to save at least £1,600 to receive the minimum Government bonus of £400.
Importantly, an account can be opened now with as little as £1, but you can make an initial deposit of up to £1,200 (the monthly maximum plus an extra £1,000). The scheme is open to first-time buyers aged over 16. Once you have opened an account you will be able to save in your Help to Buy ISA account until 30 November 2029 when accounts will close to additional contributions. Bonuses can be claimed until 1 December 2030.
The bonus is only payable on the purchase of a first home. The scheme is limited to one per person (not one per home) so two people buying a home together can both receive a bonus. The bonus is available on home purchases of up to £450,000 in London and £250,000 outside London and can only be claimed against the deposit for a new home. It cannot be used to pay solicitors, estate agents or any other costs associated with buying a home.
Source: HM Revenue & Customs | 20-11-2019