Don’t Miss Out On The Help to Buy ISA
The deadline for Help to Buy ISA’s is almost upon us, with a date set of November 30th, 2019. It is recommended that you open your account and act before that date arrives, as the government has given notice that the scheme is to no longer be made available.
There aren’t any rules that say you have to buy a house straight away if you open a Help to Buy ISA. Truth is, you have up until 2029 to cash in before your benefits would be lost. This is really beneficial for First-Time Buyers in Newcastle. It’s maybe worth encouraging your partner to also open a Help to Buy ISA, in case you decide you want to buy a property together.
In regard to minimum deposit for your Help to Buy ISA, you can put in as little as £1 the first time. The idea for the scheme is that the government will boost your total savings by a very nice 25% towards your first home purchase.
The maximum payable bonus cap is £3000. The scheme was created with the intention of helping kickstart the property market. There is also a cap on the amount that can be paid in, with the limit being £200 per month and a maximum initial deposit of £1200. The bonus itself is designed specifically to help with the home buying costs, as opposed than being put towards their initial deposit.
The reason for the latter point is that you aren’t actually entitled to the bonus until there is proof from your solicitor that you did indeed use your savings to purchase your first home. The bonus is also only payable after completion has taken place.
As experienced mortgage advisors in Newcastle, we highly recommend that First-Time Buyers in Newcastle look into getting a Help to Buy ISA.