Government confirms how to claim Help to Buy: ISA bonus
Julia Madden, 1st November, 2015
Today, the government published the five steps first-time buyers need to take to claim their bonus from the Help to Buy: ISA scheme.
What is the Help to Buy: ISA scheme?
The Help to Buy: ISA scheme was announced in the March 2015 budget.
First-time buyers who chose to save through this scheme would get a government bonus, which would be calculated and paid when they bought their first home.
It was announced in the July 2015 budget that first-time buyers could start saving through the scheme from 1st December 2015.
From that date, first-time buyers can open their Help to Buy: ISA account with a one-off deposit of £1,000 and pay a maximum of £200 a month into it.
The government will top up the sum by 25%, up to a maximum of £3,000.
5 steps to claim the Help to Buy: ISA bonus
- The first-time buyer deposits money in a Help to Buy: ISA account.
- When they are ready to purchase their first home, the first-time buyer closes their account and receives a closing letter from their ISA manager.
- The first-time buyer gives the closing letter to their solicitor.
- Using the letter, the solicitor applies online for the government bonus.
- The bonus is transferred to the solicitor, who completes the purchase of the home using the full bonus amount.
Sources: HM Treasury and Practical Law.
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