The Government introduced Help to Buy ISAs to help first time buyers save for a home. The ISA works in the same way as traditional ISAs. However, provided you meet certain criteria, you can claim a bonus of 25% when closing the ISA account.
The criteria to qualify for the bonus payment is as follows:-
• The maximum purchase price is £250,000.00 outside London, and £450,000.00 within London Boroughs
• The last date to apply for a Help to Buy ISA is 30 November 2019
• You can only hold one Help to Buy ISA at any time
• The minimum bonus you can claim is £400.00, with the maximum being £3,000.00
• You must sign a declaration confirming that you are first time buyer and do not own any other properties
The bonus payment can only be used to complete your purchase of a house. It cannot be used towards your deposit on exchange. You can, however, close your ISA account and use the monies saved at any time within the transaction. The closure of your ISA account takes around 10 working days, and the bonus payment is usually paid to the conveyancer within 5 working days of the bonus request being made.
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