Would you say no to some free cash towards your first home? Of course you wouldn’t!
The deadline is fast approaching for opening a savings account which attracts a huge 25% top up from the government when you close the account and buy your very first home.
The government has been supporting first time buyers through its Help to Buy ISA scheme since late 2015, but the deadline for opening an account is Saturday 30th November 2019.
Accounts can be opened with as little as £1 (and as much as £1200), and will be eligible for up to £3,000 towards your first property purchase (conditions do apply – for instance, unless you are serving in our Armed Forces, you will need to be buying the property to live in it yourself, and the purchase price of your first home cannot exceed £250,000, or £450,000 in London). You can save up to £200 per month after the first month.
You will need to be aged 16 or over to open the account, and will need a valid national insurance number. There have already been delays with HMRC issuing national insurance numbers in the run up to the deadline, so act immediately if you need to speak with HMRC to get your NI number before you can open an account.
No longer a first time buyer but have almost-adult children? Think ahead for your now-teenage children; if they are aged 16 or over and hope to buy their first home in the next ten years, why wouldn’t you encourage them to open a HTB ISA now, to benefit from a top up from the government? Payments can be made into the account until November 2029, and the cut off for claiming your 25% bonus (capped at a maximum of £3,000; so, when you have saved £12,000) is 1st December 2030.
Don’t delay – act now so as not to miss out on the opportunity to boost your future deposit.