A quarter of a million first time buyers have opened a Help to Buy ISA since they became available last December.
More than half of them are aged 30 or under. Some people have already claimed the bonus offered by the ISAs and are using them to help buy their first home.
Help to Buy ISAs were launched by Chancellor George Osborne in last year’s Budget.
The scheme enables first time buyers to save up to £200 a month in a dedicated ISA run by banks and building societies. The government will then top up those savings by 25%, up to a maximum of £3,000.
To make the most of the scheme, savers can open their account with a one-off lump sum of up to £1,000 in addition to the monthly maximum.
Couples buying together can combine their bonuses, meaning a potential boost of up to £6,000 towards a deposit for a first home.
The scheme is only available to first-time buyers and the money has to be used to buy a home in order to qualify for the 25% bonus. When savers are ready to buy a home, the money in the ISA is transferred to their solicitor who uses it to complete the purchase.
Please contact us if you would like more information about the legal aspects of buying or selling a home.