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First Home – Help to buy ISA
First Home – Help to buy ISA
By Marie walshe In Uncategorized Posted February 20, 2016 0 Comments

If you are tying to get on the housing ladder, have you considered taking advantage of help from the government towards increasing your deposit.

Savings in the HBISA earn tax-free interest, and the Government will add a bonus to the amount saved when the money is used as a deposit on the saver’s first home. For these purposes, a ‘first-time buyer’ is someone who has never owned an interest in a residential property, either in the UK or abroad.

This means that if a couple buy their first home together and each person has saved £12,000 in a HBISA, jointly, they will receive a Government bonus of £6,000 (£3,000 each). This will increase their deposit from £24,000 to £30,000.

It is not necessary to have identified a property to buy in order open a HBISA, or indeed have a definite plan to buy one. They can be used as a savings account, with the added benefit that the Government will add a bonus if the funds are used as a deposit for a first home.

The Government bonus on the HBISA is generous, and it is worth opening an account if you have not previously owned an interest in a property, even if just on the off chance that you may buy a home before 2030. Parents or grandparents can give their children money with which to save, but the child must open the account in their own name themselves.

 

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