The deadline for Help to Buy ISA’s is approaching fast, with a date set of November 30th, 2019. It is recommended that you open your account and act before that date arrives, as the government has given notice that the scheme is to end.
You don’t have to buy a house straight away if you open a Help to Buy ISA. In reality, you have up until 2029 to cash in, before your benefits would be lost. It’s worth encouraging your current partner to open one too, just in case you decide to purchase a home together.
ISA accounts only require a small deposit amount to open, with the minimum being only £1. The idea for the scheme is that the government will boost your total savings by a very nice 25% towards your first home purchase.
The cap on the maximum payable bonus is £3000. The scheme was created with the intention of helping kickstart the property market. There is also a cap on the amount that can be paid in, with the limit being £200 per month and a maximum initial deposit of £1200. The bonus itself is designed specifically to help with the home buying costs, as opposed than being put towards their initial deposit.
The reason for the latter point is that you aren’t actually entitled to the bonus until there is proof from your solicitor that you did indeed use your savings to purchase your first home. The bonus is also only payable after completion has taken place.