Saving for a deposit for your first home can be hard. But help is here.
At MY360 Living we understand that saving for your first home can be hard. But if you choose to take out a Help to Buy ISA, then for every £200 that you save towards your new home, the Government will add another £50. This will help to boost your savings by 25%, up to a massive £3,000. Plus, like any other ISA, the interest that you earn is completely tax free!
3 simple steps to boost your savings
Step One – open a Help to Buy ISA
Help to Buy ISAs are available at most leading banks and building societies. And, the ISA is available to each first time buyer. So, if you’re saving to buy a house with your partner, you could both open an ISA and both of you will receive a 25% boos, meaning that you will receive up to £6,000 towards your new home!
Step Two – Start Saving
The amount that you save is up to you and your circumstances. However, the Government bonus is £400 and therefore, you will need to save at least £1,600 in your Help to Buy ISA before you can claim your bonus.
You can deposit a lump sum of up to £1,200 in the first month to help you ‘kick start’ your savings and then save up to £200 per month after that. You don’t have to save every month, but the amount that you have set-up to save must remain the same. So, if you are unable to save £200 one month, then you won’t be able to save £400 the next month.
The maximum bonus that you will receive is £3,000. In order to receive this, you will need to have saved £12,000.
Step Three – Receive your bonus
Once you’ve chosen the right MY360 home for you, your Solicitor will apply for your Government bonus. This is calculated based on how much is within your account when you close it and includes everything that you have saved and all of the interest that you have earned. The bonus is paid when you purchase your new MY360 home.
You are free to withdraw your money out of your Help to Buy ISA at any time, but if you’re not buying a new home then you won’t be eligible for your bonus.
Who is eligible?
You must meet the following criteria to qualify for a Help to Buy ISA:
• be 16 or over
• have a valid National Insurance number
• be a UK resident
• be a first time buyer and not own a property anywhere in the world
• not have another active cash ISA in the same tax year.
Plus, in order to qualify for the Government bonus, your new home must:
• cost up to £250,000, or up to £450,000 if you are buying in London
• not be a second home or a buy-to-let property
• not be rented out after you buy it
• be purchased with a mortgage