#NoBrainer

If you answered YES to both these questions then a Help to Buy ISA could be the place for your savings.

The Help to Buy ISA has been knocking around for over a year now but this doesn’t mean you’ve missed the boat. You’ve got until December 2019 to open one and until 2030 to use it! Plenty of time to save, save, save for your first home AND get money from the government on top of your savings.

So how much will the government give me?

25% tax free on whatever is in your ISA when you buy your home. Although, there are restrictions to this as the minumum amount you can save is £1600 and the maximum is £12,000. This means that you can expect anywhere between £400 and £3000 back depending on how much you personally have invested.

Remember that to get the money from the government you MUST be using the money for a deposit. You can take the money out for other things but you will not get the 25% on top. 

How much money can I put in?

You can put up to £1200 in, in your first month and then a maximum of £200 each month thereafter.

I want to buy a home with my partner but they already own a house. Can I still use a Help to Buy ISA?

The answer is yes you can BUT your partner can’t as couples are treated separately.

The good news is this means that if neither of you have owned a house before then you can both open one.

Is there a limit to the property purchase price?

Yes –

If you are buying a property outside of London you can use it for any property costing under £250,000.

If you are buying a property in London you can use it for any property costing under £450,000. This is to account for the higher property prices in London.

I’m only 18 and don’t want to buy a house for another few years. Is it worth setting up a Help to Buy ISA?

Yes!

Remember you’ve got until 2030 to withdraw the money from the account (assuming a future government do not change this) so at the time of writing you still have 13 years to save.

Plus, with this account it is advantageous to save for longer to give you the chance to save up to the maximum £12,000 and make the most of the extra 25%.

So, if you ask us, when you are saving for your first home a Help to Buy ISA is a no brainer!