Help to Buy ISA's

millj1

Good Evening,

I am looking for some advice in relation to Help to Buy ISA's.

Myself and my partner (UK residents) are looking to buy a new-build flat in the region of £140k.

We have £15,000 in savings towards a deposit - with this in mind are we still applicable for a Help to Buy ISA and if so, which kind?

Thank you,
J

Rich2808

Yes - assuming you have never owned a share in a residential property before (via inheritance or buying) you are both eligible for the help to buy isa - and assuming you are under 40 the lifetime isa too.

However you can only invest £1,200 each as an initial lump sum and £200 a month thereafter in the HTB isa - and cannot claim a bonus until the balance reaches £1,600 (i.e. month 3 - when you could get a £400 bonus each). Best buys are at the link below.

https://www.moneysavingexpert.com/savings/help-to-buy-ISA/

You might also want to consider a lifetime isa - if below 40 - as that allows you to invest as much as you like up to the isa limit and you get a 25% bonus capped at £1,000 per annum (so its potentially only worth investing £4k a year for this reason). However you can only draw down that bonus to buy a house once the lifetime isa has been open for 12 months.

So if you are looking to buy soon the HTB isa might be more suitable - you could open one today and in theory claim a £400 bonus each on a purchase in May (assuming you pay in £1200 now, £200 in April and £200 on 1 May). But check your solicitor is registered for the scheme - and make sure you understand the process!

You are also presumably eligible for the first time buyer stamp duty exemption as well - a saving of about £300 on a home worth £140k.