A Midlands property lawyer has warned first-time homebuyers that the Government’s popular Help to Buy ISA scheme is set to close.
The alert has come from residential property specialist Javed Ahmed, an associate at county firm mfg Solicitors.
Mr Ahmed, who acts on a wide range of property transactions, says that new Help to Buy ISA accounts can only be opened until 30 November this year.
He said: “There are very few occasions in life when you will be offered what is effectively free money. That’s what the Help to Buy ISA gives to first-time buyers to assist with the purchase of a home.
“However, it isn’t going to be around for much longer as new accounts can only be opened until 30 November this year. There’s only weeks left.”
A Help to Buy ISA can be opened by anyone aged 16 and over who does not yet own a property. They were introduced in 2015 as a way of helping people get on the housing ladder at a time when prices were rising.
People are allowed to put up to £200 a month into an ISA and when ready to buy a house and the Government will top it up with a further 25%, up to a maximum of £3,000. The bonus can be claimed on homes worth up to £250,000 outside of London.
Mr Ahmed added: “These ISAs have been hugely popular as there’s no tax payable on any interest earned. This means the Government’s 25% top up beats the very best saving rates of any bank account currently on the market. A simple visit to a bank can help get the ball rolling before it’s too late.”
Contributions to Help to Buy ISAs can be made up until November 2029, and the bonus claimed until 1 December 2030.
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