Don’t let news reports put you off a Help to Buy ISA

Fri 9th Sep 2016

We comment on news reports criticising the Help to Buy ISA.

“Recent news coverage criticising the Help to Buy ISA focuses on the fact that the scheme cannot be used to save for an initial deposit. However, the reports do not make clear the distinction between the funds saved in the ISA, and the bonus offered as an incentive by the Government in respect of the accrued savings.

Once the ISA is closed the saved funds can be put towards the deposit required at exchange of contracts. It is the Help to Buy bonus itself that cannot be used towards a deposit, instead, it will contribute towards the funds consolidated for the completion of the property transaction. It is really important that conveyancers make clients aware that this is the case to avoid confusion or disappointment. A good lawyer will also ensure that clients are made aware that bonus funds cannot be claimed AFTER completion date.

“It has also recently come to light that thousands of savers buying shared-ownership properties will be ineligible to benefit from the Government Bonus scheme if the total value of the property exceeds the scheme’s cost limits – capped at £450,000 in London and £250,000 elsewhere in the UK. Again, it is really important for home buyers to be made aware of this at the outset, to avoid them facing a financial shortfall at the last minute.

“Despite the criticisms of the scheme, it is definitely worthwhile considering the Help to Buy ISA if you are saving to buy your first home. It could boost your savings by 25%. The key is to make sure you understand how the scheme works and appoint a good lawyer who can give you accurate and up to date advice.

“Coodes is registered as a scheme member and we are pleased to be able to apply for the bonus on behalf of clients. In making the application for the bonus we will confirm our clients’ eligibility to receive the bonus and also the eligibility of the property being purchased. The bonus funds are then received into Coodes’ client account and put towards the total funds required to complete the purchase.

For more information on Help to Buy ISAs or for any conveyancing assistance, contact the team on 0800 328 3282 or

Fri 9th Sep 2016

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