What’s the new Help-to-buy ISA introduced by George Osborne?
The Government is offering first-time homebuyers up to £3,000 to put down as a deposit on a home through the new Help-to-buy ISA.
By saving through the Help-to-buy Isa, first-time buyers will have their savings boosted by the Government when they decide to buy a property. This payment is equal to 25% of their savings, so for every £200 they save, the Government will give them £50, up to a maximum of £3,000.
The maximum amount that can be put into the Isa and boosted is £12,000 – the government’s payment will top this up to £15,000.
The bonus is for each person, not for each house, so a couple would be entitled to up to £6,000 towards their home. However it is only paid towards a first home, not a buy-to-let, even if the buyer doesn't own another home and the cost of the home cannot be more than £450,000 in London and £250,000 everywhere else in the UK.
Anyone with the help-to-buy ISA can withdraw money from it but will only get the bonus Government payment when they buy a home, although the ISA will also pay interest.
Thanks for reading,
The Estateducation Team.
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