As the 30 November closing date fast approaches, should first-time buyers open a Help to Buy ISA before it's too late?
The Government’s offer of “free money” for people saving for a deposit on their first home closes to new investors in November.
So should would-be buyers rush to take out a Help to Buy ISA, or let the opportunity pass them by?
The answer depends on a buyer’s individual circumstances, but those who can save regularly and have time to let their account build up could walk away with a £3,000 bonus.
How the Help to Buy ISA works
The Help to Buy ISA lets buyers put up to £200 a month into a special savings account.
To kick-start your account, in your first month you can deposit a lump sum of up to £1,200.
Interest rates are low, as they are everywhere on the high street.
Even if you shop around you are only likely to earn about 2.5 per cent. But the interest is tax-free and for every pound you save, the Government will chuck in an extra 25p.
Couples can open individual ISAs and put them together when they are ready to buy, giving them a maximum possible government bonus of up to £6,000.
Savers who change their minds can take out their money at any time, although they will forgo the bonus payment.
The Government says more than 225,000 bonuses have been paid since 2013 and calculates that first-time buyers who make use of the scheme are able to buy a property three years earlier than those who do not.
https://www.homesandproperty.co.uk/property-news/buying/first-time-buyers/help-to-buy-isa-2019-should-firsttime-buyers-open-an-account-before-the-government-bonus-scheme-a134436.html