7 years ago by admin and 2016 Views
Introduction
The new Help to Buy ISA offers a massive opportunity for first-time buyers. With this housing scheme, you can save on your mortgage deposit while also getting an additional £3,000 at that. However, there is a small clause in the scheme stating the property you bought
“must not be rented out after you buy it.” This small clause has caused much dismay to prospective applicants for the ISA scheme.
Many applicants are worried that they will have limited opportunities with their investment as their flexibility is locked into their homes. The clause above brought many questions with little information to provide. Fortunately, we can find information online to help prospective applicants. This information helps applicants understand what is Help to Buy ISA. Also inform them if they can use it for buy-to-let properties.
What Help To Buy ISA is
Help to Buy ISA is a Help to Buy scheme launched on December 1, 2015. It’s the same as normal cash and helps you to save tax-free. The difference is that Help to Buy ISA is intended for first-time buyers. Under Help to Buy ISA, you can save up to £200 every month. Although, in the first month, you can put an initial contribution of £1,200 maximum, if you can afford it.
Upon reaching the state when you can finally buy your prospective home, you will receive the cash bonus that the government provides through ISA. The government provides a cash bonus topping your savings by 25%. With Help to Buy ISA, you can receive a maximum of £3,000 from the government, which you can receive if you saved a total of £12,000.
You can receive the contribution the government promises if you have saved a minimum amount of £1,600 into your Help to Buy ISA account. This is because the minimum cash bonus that the government offers is £400. You can qualify for Help to Buy ISA if you are a first-time buyer aged 18 years or older. You can’t be eligible if you owned or have shared a property before.
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