Seddon Blog

Why You Should Take Advantage of the Help to Buy ISA

Posted on November 20th, 2019

The government-backed Help to Buy ISA is only available until November 30th, 2019, and Martin Lewis from Money Saving Expert is strongly urging people to open one up before then. Here’s every reason why.

Low-risk investment

The Help to Buy ISA is an incredibly low-risk ISA to save into. As Martin Lewis has mentioned, you need only pay in £1 to open up a Help to Buy ISA and you can take out the cash you have paid in at any time without facing fees. You even get to keep the interest earned on your savings whether you use the ISA to buy a house or not!

Gateway to the property ladder

With Help to Buy, you could buy a new build property with as little as a 5% deposit as opposed to the regular 10% deposit. This lower bar to hit allows many more people to afford their first home and get themselves onto the property ladder.

A government boost

As you may not know, when you use your Help to Buy ISA to purchase a home, the government will add a bonus 25% of your own contributions to the deposit amount. This bonus is eligible on amounts between £1,600 and £12,000, which means you could receive up to £3,000 from the government.

Couples are treated separately

Possibly the best part about the Help to Buy ISA is that couples who buy their first home together are treated as separate entities. So, as long as both parties are first-time buyers, you could actually receive up to £6,000 in government bonus towards your deposit! This massively increases your budget for possible properties, making it that bit easier to find your dream home.

Worth opening even if you’re buying soon

As long as you’re planning on buying more than 3 months from now, the Help to Buy ISA will still be useful to you. That’s all the time it takes to receive a government bonus and benefit from the lower deposit rate. This would require an initial £1,200 deposit and then 2 subsequent monthly deposits of £200, as the ISA is limited to £200 per month.

Save now, buy later

You only need a small amount to get started with your Help to Buy ISA right now, and you can still use it to purchase a property as late at November 2029. And as we mentioned, you lose nothing even if you don’t end up buying a property, so why not take advantage?

Buy a new Seddon home with Help to Buy

All our stunning new build homes are available with the government-backed Help to Buy scheme. We have developments all across the north of England in fantastic locations, and our variety of house types is sure to give the prospective home buyer plenty of choice.

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