With high property prices and slow wage growth, saving to buy your first home can seem like a real slog. There’s help at hand though, with a Help to Buy ISA.

What is a Help to Buy ISA?
If you’re a first time buyer, a Help to Buy ISA enables you to save up to £200 a month towards your first home, whilst giving you an extra 25% boost from the Government. That means, for every £200 you save, you’ll receive an extra £50 top-up.

What is the Maximum Government Contribution?
The maximum Government bonus is £3,000. To receive that you would need to have saved £12,000, making your total savings £15,000. However, as Help to Buy ISAs are available to each first time buyer, rather than per home, you could receive up to a £6,000 bonus if you’re buying with a partner.

How Do I Set Up a Help to Buy ISA?
ADN Financial Solutions can advise you on the range of Help to Buy ISAs available from banks and buildings societies, helping you find the one that’s the best fit for you. In the first month of opening the account, you can deposit up to £1,200 to kick-start it, then up to £200 each month thereafter.

How Can I Access the Savings?
When you’re ready to buy your own home, you will need to ask your solicitor or conveyancer to apply for the Government bonus on your behalf. Once received, this bonus can be added to the funds you’ve saved. The bonus must not be used to pay for solicitor’s fees, estate agent’s fees or any other indirect costs associated with the purchase of your new home.

Are There Any Restrictions?
The scheme is only open to those first-time buyers aged 16 or over that are purchasing a property in the UK. There’s no limit to how long you can save for and no minimum monthly deposit, but there is a maximum deposit of £200 per month.

The bonus is available for property purchases of up to £450,000 in London and £250,000 in the rest of the UK.

You’ll need to have saved a minimum of £1,600 before claiming the minimum bonus of £400. You’ll need to have saved a maximum of £12,000 before claiming the maximum bonus of £3,000.

For guidance on setting up a Help to Buy ISA please call ADN Financial Solutions on
02392 822 616 or click here to email us.

Please Note: Your home may be repossessed if you do not keep up repayments on your mortgage. The value of investments and pensions and the income they produce can fall as well as rise. You may get back less than you invested.

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