What is a Help to Buy ISA?
This type of ISA is also considered a type of cash ISA but is specifically designed to help first time buyers save for a mortgage deposit and get their foot on the housing ladder.
The UK government operates it as an affordable home ownership scheme and will top up your savings by another 25% (up to a maximum of £3,000) on savings of up to £12,000. If you are buying a property with someone else, they can also open a Help to Buy ISA.
You can use the government ISA calculator to see what bonus you could get.
In order to qualify, there are some eligibility rules including:
- The purchase price of the property can be up to £250,000 (£450,000 in London)
- The property must be the only home you own
- You must live in the property
Your first deposit into your Help to Buy ISA can be up to £1,200. You can then deposit up to £200 a month into the account. Your solicitor will apply the 25% government bonus when you buy the property.
For more information read the UK Government Help to Buy: ISA guide.