Savings and Investments
< 1 min read

Help to Buy: ISA scheme

James Mee

Help to Buy: ISA scheme

The Help to Buy: ISA scheme was launched in December 2015 and allows savers to claim a government bonus of 25% on monthly savings of up to £200 towards their first home. The bonus translates to an extra £50 added to every £200 saved up to a maximum governmental contribution of £3,000 on £12,000 worth of savings.

The deadline for opening new accounts expired on 30 November 2019. Existing account holders can continue to save in their ISA account until 30 November 2029 when accounts will close to additional contributions. Bonuses can be claimed until 1 December 2030.

New figures have revealed that since the scheme was launched (until the end of December 2020), first-time buyers have received bonuses of over £534m which were used to finance properties worth £67.5bn in total. The mean value of a property purchased through the scheme is £174,531 compared to an average first-time buyer house price of £210,727 and a national average house price of £251,500.

Those who had signed to the scheme before it closed to new entrants can purchase homes worth up to £450,000 in London and £250,000 outside London. The bonus can only be claimed against the deposit for the home. It cannot be used to pay solicitors, estate agents or any other costs associated with buying a home.

Want to know more about HTB and ISA’s? Get in touch with us today.

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