Date Published: 10/10/2019 16:09
If your children or grandchildren are at that age where they are starting to think about buying a house, you don’t have very long to encourage them to get a bit of extra financial help from a Help to Buy ISA.
The Help to Buy ISA is being axed at the end of November 2019. But you can keep paying into one if you already have one and there are other ISAs that can also be used to buy a house.
The Help to Buy ISA was launched in 2015 with the aim of helping first time buyers get a foot on the property ladder by saving up a deposit. With this ISA the government will add 25 per cent to your savings, up to a maximum of £3,000 on savings of £12,000.
To be eligible the account holder must be over 16, resident in the UK and not own any other property anywhere in the world and not have opened any other ISA in that tax year.
In the first month you can put up to £1,200 in, but following payments are limited to £200 a month. And when you come to buy the property the value cannot be more than £250,000, or £450,000 in London, and you will have to save at least £1,600 before you can claim the minimum government bonus of £400.
If you already have a Help to Buy ISA you can continue to pay in until 2029. And if you don’t, and you miss the deadline this November, there is still the Lifetime ISA. With this you can save up to £4,000 each year until you reach 50. Each year the Government will add 25 per cent up to a maximum of £1,000. You can then withdraw the money to buy your first home or when you are 60 or over or if you are diagnosed as being terminally ill, with less than 12 months to live.
The Lifetime ISA is open to anyone aged between 18 and 40 and, like the Help to Buy ISA, has various other rules.
If you want to know more about savings, please get in touch on 01246 435 996 or at info@wealthmanagement.uk.com
No individual investment advice is given, nor intended to be given in this article and liability will be accepted in respect of any action you may take as a result of reading this article. If you are unsure you are urged to take independent investment advice.
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