How to use the help to buy scheme
Launched in 2013, the help to buy scheme was created in order to help first-time buyers finally get onto the property ladder. The scheme was aimed at first-time buyers only and offered them bonuses when saving up for their first deposit.
Over the last 4 years, the scheme has managed to help more young adults than ever to get their foot on the property ladder.
With the cost of the average deposit being around £10,000, young people were struggling to be save up the full amount. This scheme helps first-time buyers by offering a bonus amount on top of whatever they manage to save when using a help to buy ISA.
What is a help to buy ISA?
You can find help to buy ISAs at the major banks and building societies. These savings accounts allow you to put away a maximum of £200 a month (*£1,200 in your first month). The government then offers a bonus on top of your savings when you use it for your deposit.
However, you only have until 30th November 2019 to open your help to buy ISA, after that date it will be closed to new applications. The idea behind the ISA is to make it easier to reach the deposit threshold needed to buy a home. You can use the bonus to reach the full amount of deposit needed, helping you to save both time and money.
How do you know if you’re eligible for the scheme?
If you already own your own home or have done previously, you are not eligible for the help to buy scheme. This scheme is exclusive to first-time buyers and is designed to help those that have never owned a home.
To help make things a little clearer, property solicitors Ellison Thomas have put together the informative infographic below. It takes a look at everything you need to know about the help to buy scheme and the help to buy ISA, as well as providing a handy flow chart to help you determine if you are eligible.
How do you take advantage of the help to buy scheme?
If you would like to take advantage of the help to buy scheme and ISA, the first port of call is your bank. Book an appointment with someone at your local branch to talk through your options and open a help to buy ISA.
Make sure to get all the information from your bank and also compare the rates with other help to buy ISAs. Different banks provide different opening offers and rates, so make sure you’re getting the best deal possible!
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