Liz Bailey, Conveyancing Executive at Spire Solicitors LLP, discusses First Time Buyers and the Help to Buy ISA scheme.
I have found that during my career in residential property and as a conveyancing executive the housing market will always need the First Time Buyer to underpin the market. Although Lenders are now offering higher loan to purchase price mortgages the average price of a house is now £216,000 and First Time Buyers are finding it ever more difficult to get on the housing ladder. Without relying on the bank of Mum and Dad or even Grandparents the only other option is to save a substantial deposit. The Government have now withdrawn the Help to Buy Mortgage Guarantee Scheme leaving only the Help to Buy Equity Loan, restricted to new build homes, or the Help to Buy ISA, for First Time Buyers only. As there is a lack of new builds many people are utilising the Help to Buy ISA scheme as this allows a choice of the type of property to purchase.
Q: How does the Help to Buy ISA Scheme work?
A: Once you have decided what Bank or Building Society you wish to open your Help to Buy ISA you can save up to a maximum of £200.00 per month and the Government will provide a bonus of 25% of your savings.
Q: What is the limit of savings?
A: A maximum of £12,000.00 providing a bonus of £3,000.00.
Q: How many persons can apply?
A: Help to Buy ISA can only be held by an individual. However, if you and your partner are first time buyers each of you can open a Help to Buy ISA therefore maximising a full £6000.00 bonus toward a purchase.
Q: What is the price limit on the property to be purchased?
A: Under £250,000 (£450,000 for property in London).
Q: When is the bonus to be paid?
A: A Solicitor will claim the bonus between exchange and completion.
You will need to instruct a registered Help to Buy Conveyancer to deal with the transaction to request the bonus payment, we at Spires will be happy to assist. Please contact Spires if you are thinking of taking advantage of the Help to Buy Scheme towards your purchase and we will be happy to provide a quotation.
