Who is eligible for a Help To Buy ISA?
Only first-time buyers can open a Help to Buy ISA.
How much can I deposit into a Help to Buy ISA per month?
The maximum you can deposit a month is £200, with a one-off the maximum initial deposit of £1,000.
When can I use the money in a Help To Buy ISA?
You can use the money toward the deposit fund or completion funds, but the bonus will not be claimed until completion.
Is there a maximum/minimum property purchase price required to claim the Help to Buy bonus?
There is no minimum amount required. However, if you are purchasing for more than £250,000 outside of London, you will not be able to claim the Help to Buy bonus. The maximum you can buy in London is £450,000 to claim the bonus.
What is the maximum/minimum required to have in my Help To Buy ISA so I can claim the bonus?
The maximum amount you can have in your Help to Buy ISA in order to claim the government bonus is £12,000. The minimum you must have to qualify for the bonus is £1,600.
How is the bonus calculated?
The bonus is calculated on the total amount that you have saved in your Help to Buy ISA and the bonus will be 25% of the balance. For example, if Rob has £10,000 in his ISA, he will receive a bonus of £2,500. The maximum bonus you can receive is £3,000 and the minimum is £400.
How and when do I close my Help To Buy ISA?
You must close your Help to Buy ISA at least two weeks before you wish to use the funds & claim the bonus, this is so enough time is given to the ISA manager in order for them to transfer the money that’s in your Help to Buy ISA Account and provide you with a closing statement (which can take a few days and is sent in the post usually).
Step 1 – Ask for your ISA to be closed
Step 2 – Request a closing statement
Step 3 – Transfer the money to your normal account
Step 4 – Provide your conveyancer with the closing statement immediately upon receipt
How and who claims the bonus on my behalf?
The solicitor/conveyancer you have instructed to act for you in respect of your purchase will claim the bonus on your behalf and is usually sent to your solicitor/conveyancer on completion. You will need to provide your solicitor/conveyancer with the closing statement as soon as possible so they can apply for the bonus using the online portal, usually a bonus is claimed 7 days prior to completion.
Your conveyancer/solicitor will apply for the bonus via the Help to Buy online portal. They will then receive a notification to let them know the bonus has been approved. This will be paid into your solicitors/conveyancer’s client account on the date they have selected (this is often the day before completion).
What can I use the government bonus towards?
This can be used towards the purchase price of the property you are buying.