Government confirms how to claim Help to Buy: ISA bonus

Today, the government published the five steps first-time buyers need to take to claim their bonus from the Help to Buy: ISA scheme.

What is the Help to Buy: ISA scheme?

The Help to Buy: ISA scheme was announced in the March 2015 budget.

First-time buyers who chose to save through this scheme would get a government bonus, which would be calculated and paid when they bought their first home.

It was announced in the July 2015 budget that first-time buyers could start saving through the scheme from 1st December 2015.

From that date, first-time buyers can open their Help to Buy: ISA account with a one-off deposit of £1,000 and pay a maximum of £200 a month into it.

The government will top up the sum by 25%, up to a maximum of £3,000.

5 steps to claim the Help to Buy: ISA bonus

  1. The first-time buyer deposits money in a Help to Buy: ISA account.
  2. When they are ready to purchase their first home, the first-time buyer closes their account and receives a closing letter from their ISA manager.
  3. The first-time buyer gives the closing letter to their solicitor.
  4. Using the letter, the solicitor applies online for the government bonus.
  5. The bonus is transferred to the solicitor, who completes the purchase of the home using the full bonus amount.

Sources: HM Treasury and Practical Law.

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