Government Help

Guide to Help to Buy ISAs

Paula John
Written By:
Paula John

The Government’s Help to Buy ISAs were launched in December 2015, giving wannabe first-time buyers the opportunity save a deposit for a property, earn tax-free interest, and receive a helping hand from the Treasury.

For every £200 saved into your Help to Buy ISA the government will top it up by an extra £50, a huge boost to your property savings pot.

While first-time buyers will benefit from tax-free interest on the money they save into their ISA, at the rate offered by their provider, the government boost is only paid when they come to purchase their first home, and it goes straight to the solicitor or conveyancer to form part of the deposit.

Help to Buy account holders can receive a maximum of £3,000 from the government if they save £12,000 into their ISA, meaning that joint first-time buyers could potentially receive a boost of £6,000 to their deposit. However only £200 a month can be saved into a Help to Buy ISA, with an extra £1,000 allowed this month to kick-start your savings pot.

Help to Buy ISAs are offered by a range of banks, building societies and credit unions.

Click here to find out whether you are eligible for a Help to Buy ISA.