Since 1 December 2015, those who have never owned or held an interest in a property (first time buyers) have been able to save towards buying their first home using the Government Help to Buy: ISA scheme. Official statistics reveal that over one million Help to Buy ISA accounts have been opened since the scheme was introduced.
A Help to Buy ISA account can be opened with an initial minimum investment of a £1. A maximum of £1,200 can be deposited in the first month then £200 per month thereafter. The Government will then provide a 25% bonus on the savings in the account when the holder comes to complete on the purchase of their first home. The maximum government bonus available is £3,000.
However, first time buyers only have until 30 November 2019 to open a Help to Buy ISA before they are replaced by the Lifetime ISA scheme. Whilst the Lifetime ISA scheme also provides a 25% Government bonus on funds saved within the account, there are some differences compared to the Help to Buy: ISA scheme, such as that first time buyers are required to have a Lifetime ISA for a year before they are eligible for the 25% Government bonus towards their first home.
If you are a first time buyer and thinking of buying your first home, Hewitts have an experienced residential conveyancing team who are ready and willing to guide you through every step of your purchase.