Help-to-Buy ISAs Explained

Want a 25% bonus to help to buy your first home? With this account you can save up to £1,200 in the first month then up to £200 a month after that. When you go to buy your first home the government will add 25% to your balance. Sold!

For example, if you deposit the maximum amount for two years for a £5,800 balance then buy your first home you'll get a £1,450 bonus (25%).

Need-to-knows:

Minimum balance required… You need to save at least £1,600 before you can apply for the bonus (you can make this within 3 months).

The bonus is only paid up to a maximum balance… You’ll only get the bonus on a balance up to £12,000 (so a £3,000 bonus).

Beware of house price limitations… Outside London your limit is £250,000 and inside London it’s £450,000.

You'll only get your bonus at completion…. So don’t rely on it for the exchange. That’s the part where you pay the seller some money (usually 5 -10%) to take the property off the market. But once the sale is complete you’ll get your bonus, which can then be used towards the mortgage deposit.

Planning to buy with someone else? You can both open a Help-to-Buy ISA and claim the bonuses, as long as you're both first time buyers. 

What if I change my mind?

If you don't want to buy in the UK or you need the money for something else you can withdraw the balance without a penalty but you won’t receive the 25% bonus.

Can I open an account with my partner?

Nope. It's for individuals only. This is actually good news because you can each open your own account and get double the bonus!

Can I transfer my ISA to a new provider?

Yes! As with all ISAs it’s good practice to chase the highest interest rate when your current ISA’s term expires.

Which banks are offering the best interest? 

Yep, you read that right. You can earn interest as well as the bonus! Your fastest and easiest option is to open a Help-to-Buy ISA with your bank but check out the interest rate first - rates around 2% are competitive. The best rates found by the MOXI team are: Barclays (2.27%), Halifax (2.00%) and Nationwide (2.00%).

Anything else?

Help-to-Buy ISAs fall under the Cash ISA family which means you can't put money into a Help-to-Buy ISA and Savings ISA in the same tax year. If you're into your Saving ISAs big time there's a way around this as some providers offer ‘Split ISA’ services which allows you to have both. Aldermore bank offer this service and their interest rates on Cash ISAs are competitive.