Help To Buy ISA Bonus Confirmed

Help To Buy ISA Bonus Confirmed.

The government has this week confirmed how first time buyers will be able to collect their savings bonus for the new Help To Buy ISA that starts on 1^st December 2015.

What is the Help to Buy ISA?

An ISA is an individual savings account. Savings inside an ISA grow with tax privileges and have been available for many years. There is also a junior ISA available for children.

In an effort to help first time buyers onto the property ladder the government confirmed the launch of the Help to Buy ISA. First-time buyers who are saving towards a deposit for a property will receive a bonus from the government when they physically buy their first home and use their Help to Buy ISA savings.

Maximum £200 per month savings per individual (plus up to £1000 as a single lump sum investment when you open your Help to Buy ISA).

There is no minimum monthly savings amount.

25% government bonus when your Help to Buy ISA is cashed in.

Maximum government bonus £3000 meaning a couple could achieve a bonus of £6000.

The minimum bonus is £400.

To achieve the maximum bonus you would need to have savings of £12,000 and with the 25% bonus of £3000 this would take your total savings up to £15,000. As a couple looking to buy their first property this could mean savings of £24,000 with a £6000 government bonus giving you £30,000 as a deposit toward your first home.

Start date is 1 December 2015 with Help to Buy ISA accounts being available from Barclays, Lloyds Banking Group, Nationwide, NatWest, Santander and Virgin Money.

How do I get my Help to Buy ISA bonus?

When you cash in your ISA for the deposit to buy your home your ISA company will send you a closing account letter.

You should then give this letter to your solicitor.

Your solicitor can then apply online, using your letter, for the Help to Buy ISA bonus from the government.

When received, the bonus will then be used as part of your deposit toward your new home.