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First time buyers urged to apply for Help to Buy ISA

 
Created on 08/11/2019 @ 09:16
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First time buyers in Montgomeryshire have just weeks to apply for a Help to Buy ISA that boosts their savings by 25 per cent towards a new home, one of the region’s leading estate agents has warned. 

The Government Help to Buy ISA will close to new applications on 30 November, warns Andrew Turner, a partner at Morris, Marshall and Poole with Norman Lloyd. “Those with an existing account will have up to 2029 to save,” he said.
 
The tax free ISA receives 25 per cent from the Government, meaning for every £200 saved an account holder receives £50. The maximum government bonus is £3,000.
 
“This is a very important deadline for anyone considering saving for their first home,” said Mr Turner. “More importantly, the ISAs are based on each first-time buyer and not the household. So anyone thinking of buying with their partner could get a maximum of £6,000 from the government.”
 
He added: “The Government has set a deadline of 30 November for applications, after which it will not be available. We’d urge anyone who is considering buying their first home in the future to seriously consider applying now.”
 
The conditions are:
 
Minimum of £1,600 saved before the Government will apply a bonus
The minimum Government bonus is £400
The maximum Government bonus is £3,000 (you’ll need to save £12,000)
You have until 2029 to save in a Rent to Buy ISA
Leading banks and building societies offer the Rent to Buy ISA
 
The Government states: “When you are close to buying your first home, you will need to instruct your solicitor or conveyancer to apply for your government bonus. Once they receive the government bonus, it will be added to the money you are putting towards your first home.
 
“The bonus must be included with the funds consolidated at the completion of the property transaction. The bonus cannot be used for the deposit due at the exchange of contracts, to pay for solicitor’s, estate agent’s fees or any other indirect costs associated with buying a home.”
 
You can find out more about the Help to Buy ISA scheme at www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work/
 
“Our specialist mortgage advisor, Stuart Potts from the Mortgage Advice Bureau, is available at our offices throughout Powys, Ceredigion, Gwynedd and Shropshire to talk about the mortgage options,” added Mr Turner.
 
“We would suggest anyone who is thinking they will want to buy their first home in the future to take advantage of this scheme while they can as it’s unlikely to be replicated.”
 
Morris, Marshall and Poole with Norman Lloyd has offices at Newtown, Welshpool, Llanidloes, Machynlleth and Rhayader in Powys; Aberystwyth in Ceredigion; Tywyn in Gwynedd; and Oswestry and Bishop’s Castle in Shropshire. They are open 9am to 5pm Monday to Friday and 9am to 1pm on Saturdays.
 
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