Help To Buy ISA
For the Help To Buy ISA, people must be at least 16 years old, they must be resident in the UK, they must hold a valid National insurance number and they must be a first time buyer. They also must not have active cash ISA in the same tax year.
With respect to the type of property that is eligible for the Help To Buy ISA, it must be in the United Kingdom, it must be the only home that you will own, it must be where you intend to live and it has to be bought with a mortgage. With respect to the property price, the price of the home should be up to £250,000 while in London, the price of the home can reach £450,000.
If you and the property meet all of these criteria, the Help To Buy ISA scheme is a fantastic way to save money that can be used to help buy the home. The Government is willing to provide a 25% saving bonus, up to a value of £3,000 on people’s savings. People can save up to £200 per month but can make an initial deposit of £1,200. One thing to note about this scheme is that it is for per person, not per household. This means a couple who have the means can both take advantage of the scheme, allowing them to earn a bonus of up to £6,000.
With respect to the Help To Buy Equity Loan scheme, this is available on new build properties but it is available to people who are first time buyers and people who are looking to move home. The price for the new build property is up to £600,000. You are not allowed to sublet this property and you cannot arrange a part exchange deal on your current or former property when making this arrangement.
Share Ownership scheme
If you are looking to buy a home but you can’t afford to do so, you will find that the Shared Ownership Scheme is likely to be of benefit. This allows you to purchase part of the property and then pay rent on the remainder of the property. Over time, you can increase your holding, allowing you to fully own the property in time.
While these schemes are different, they all focus on providing people with a helping hand to get on to the property ladder. You will find that the different options make certain schemes for suitable for some people. With the Help To Buy ISA being available for first time buyers, this is a natural option for people looking to save money when buying their first home. The Equity Loans scheme is ideal if you are focused on buying a new build property.
If you want to discuss these options further or you need assistance in getting on to the property ladder, come and speak to Austin Property Services.