The Hancock Blog

An up to date, in-depth reference guide for vendors and landlords.

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Tags
    Tags Displays a list of tags that have been used in the blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.

Help to Buy ISA accounts

Posted by on in News
  • Font size: Larger Smaller
  • Hits: 2343
  • Print

 

b2ap3_thumbnail_download.png

At what age do we think about saving for a first home?

With the new help to buy ISA , anyone from the age of 16 can start building a deposit for their future home purchase. You can earn up to 4% interest tax-free and then the state will add 25% free cash, and it could be £1,000s, on top of what you save.

Even with all the hype about the new personal savings allowance, if you're a first-time buyer, putting your cash in a Help to Buy ISA before thinking about any other savings is a no brainer. 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.