Help to Buy ISAs were closed to new customers on 30 November 2019, but the good news is that you can still get a Lifetime ISA to help save for your new home.
BUT if you opened your Help to Buy ISA before this date, the good news is that you can keep saving into your account (phew!).
Help to Buy ISA Explained
Important note – you must claim your bonus by 1 December 2030.
Here’s a quick recap on your Help to Buy ISA.
- You can save up to £200 every month in your account. Saving up to a maximum of £12,000.
- The government bonus is 25% on the full amount saved.
- To qualify for the bonus, you must have saved at least £1,600, which is possible within three months (The first month you can save £1,200). If you save the maximum of £12,000, your bonus will be £3,000.
- It is important to note that the bonus is applied for by your solicitor and paid on completion, which means that you cannot use it as part of the exchange deposit.
- The Help to Buy ISA must be used to purchase a home.
- You can buy a property up to a value of £250,000 outside London and £450,000 within London.
- If you need access to your money before you buy, there are no penalties for withdrawing money. However, you won’t receive the bonus on any amounts you withdraw.
- Buying with a partner? You can each have your own Help To Buy ISA and use both parties bonus so long as you meet the criteria.
To read more check out:
Is there anything else I need to know?
- If you can get a better interest rate with a different provider you can still transfer your funds, or move them into a Lifetime ISA over time.
- Remember to double-check that your Help To Buy ISA provider operates under the Financial Services Compensation Scheme (FSCS), which means your investment is protected should anything happen to the provider.
Can I have a Help to Buy ISA AND a Lifetime ISA?
Although you can have one of each account, you are only able to use either the Help to Buy ISA or the Lifetime ISA to buy your first home. The government bonus will not be granted on both.
If you are considering moving your Help to Buy ISA or don’t have one, then check out our Lifetime ISA article to find out more.