Help to Buy ISA benefits

tubsolard

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You may also find our fully researched Help to Buy ISA guide helpful.

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Hi there, I heard about the Help To Buy ISA’s and wonderedif anyone had any information on them.

Basically, I don’t think I will qualify and I may not earnthe maximum 25% interest after the 4 year period because:

A) Me and my partner may be looking for a home over£250,000 (however the market can change so it could be below).

My partner already has a mortgage on her currentproperty.

C) We may look to buy as early as 2016.


I would be tempted to take the ISA out as part of myinvestments as there may be a chance that we wait for 4 years and we buy ahouse under £250,000 but it would only really be worth it if I still got somekind of return if I withdrew early or if I bought a property over £250,000.

So my questions are:

1) If I withdraw early, is there a standard rate Iwould return? Ie, is it worth.

2) If I do buy a property over £250,000 am Itotally exempt from the 25% or do I just receive a smaller return?

I currently have around £11,000 in Premium Bonds and save around£850 a month. I’m just trying tomaximise my earnings over the next 2 years while I save for a deposit. My girlfriend doesn’t have to worry, she hasequity in her house and similar savings, I just want to be able to contributeas much as I can!

Thanks for any help!

Scott

Archi_Bald

All that's known about the Help To Buy ISA is here: http://www.moneysavingexpert.com/news/savings/2015/03/budget-2015-help-to-buy-isas-to-launch

If you are keeping your money in Premium Bonds, you are unlikely to maximise your earnings.

jimjames

They aren't available till later in the year anyway so ko need to panic now.

You might not qualify if one of you has owned before.

tubsolard

It's not that I'm panicking, there is no rush. I just thought I would ask the question as I can't find any further information on it.

If there were no answers I'll just pop into a bank when more information is availalbe.

Regarding to maximising my savings, I begrudge putting my money into a savings accound for 1% interest. £100 on £10,000 is not worth it for me.

I am quite happy not earning any interest but potentially winning some money.

However, I might persue the savings forum area to look for some ideas!

Thanks for your responses.

Scott