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What is the help to buy ISA?

The Help to Buy ISA is a tax-free way to save for a mortgage deposit on your first home.

The government will add 25% (up to a maximum bonus of £3,000), as well as earning you interest.

What you need to know:

– You can save up to £1,200 in your first month and up to £200 a month thereafter
– You need to have at least £1,600 saved to get the added 25% bonus
– Although the maximum bonus is £3,000 (25% of £12,000), you can still use the ISA to save more
– If you and your partner are both first-time buyers, you are both able to open a Help to Buy ISA; essentially enabling you to save up to £400 a month and doubling the bonus
– You must be 16 or over and has never owned an interest in a residential properly (including inheriting a property)
– You must open the ISA anytime between 1 December 2015 and December 2019 in order to receive the bonus and must use it for a deposit before 2030
– It can be used for a deposit towards any property costing under £250,000 (£450,000 in London)
– You must be buying with a mortgage (cash buyers will not be eligible)
– It can be used with any mortgage type, including a self-build and shared ownership, however not a buy-to-let
– You are only entitled to open one Help to Buy ISA
– You are allowed to transfer the ISA between different providers in order to receive the best interest rates

For more information, please visit https://www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work/.