Help to Buy ISA's explained
In the 2015 budget the government has announced further help for first time buyers in the form of a Help To Buy ISA. An individual can make an initial deposit of up to £1000 and then monthly deposits to a maximum of £200 per month. When the money is withdrawn to purchase a property the government will add a bonus of 25% to the amount in the ISA. The bonus is capped at £3000, so the maximum savings on which the bonus is paid is £12,000.
To qualify for the bonus the money must be used to purchase a property which is an individual's main home and they must be a first time buyer. It cannot be used for a buy to let property. There is a limit of one Help to Buy ISA per individual but a number of individuals can use their ISAs to buy the same property. The value of the property purchased must not exceed £450,000 in London and £250,000 elsewhere. There is no limit to the length of time the money can remain in the ISA.
The government intends this scheme will be available from autumn 2015.
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