HELP TO BUY ISA EXPLAINED | PROS AND CONS FOR FIRST TIME HOME BUYERS

What is Help to Buy: ISA? In this video i will be explaining how the government help to buy isa works for first time buyers and also the pros and cons will be explained if you decide to open an ISA account with a bank.

Help to Buy Isas aim to give a helping hand to first-time buyers saving up for a mortgage deposit.

As with other Isas, any savings deposited in one won't be taxed, but the main benefit is that for every £200 you save, the government will pay you a £50 bonus towards the purchase price of a property.

This means the government will effectively give you a 25% top-up on savings of up to £12,000, so you could earn a maximum bonus of £3,000, which is tax-free. So at the point you use the ISA to buy your first home, all the money you have put in and the interest will have 25% added to it, with two exceptions:

You need to have at least £1,600 saved to get the bonus (so you'd get £400 extra).
The most you'll get the bonus on is £12,000 (so a £3,000 bonus). If you have more than that you can still use the ISA to save, you just won't get more than £3,000 on top.


The national banks and building societies offering Help to Buy Isas are:

Aldermore
Bank of Scotland
Barclays
Clydesdale Bank
Halifax
HSBC
Lloyds
Nationwide
Natwest
Newcastle Building Society
Santander
Ulster Bank
Virgin Money
Yorkshire Bank
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