First-time buyers of the future need to be quick if they want to benefit from a £3,000 bonus towards purchasing a property. The last chance for Help to Buy ISA applications is Saturday 30th November 2019.
Help to Buy ISAs are one of several choices for first-time buyers saving for a deposit. The product has proved very popular because the government adds 25% on top of your savings to give a bonus of up to £3000.
If you are planning to buy a house in the next few years the Help to Buy offers great flexibility. You can withdraw cash without penalty and there is no minimum amount required each month.
This ISA also pays up to 2.58% interest tax-free. It can be opened with just £1, but that must be done before the 30th November deadline.
Why open a Help to Buy ISA now?
Opening a Help to Buy ISA before the deadline could be a smart move. Even with the minimum contribution (£1), you will be able to access all of the benefits offered by the ISA.
One question many potential investors ask is how does the Help to Buy ISA compare with the Lifetime ISA?
Although the Lifetime ISA offers greater potential returns in the longer term, it is not as flexible as the Help to Buy ISA for shorter-term choices.
For example, there are financial penalties when you withdraw funds from a Lifetime ISA.
Also, if you plan to buy within the next couple of years the Help to Buy ISA could suit your needs. You can deposit up to £1,200 when you open the account and pay in up to £200 each month.
Much depends on your personal circumstances. If your plans extend further into the future, other options may be more suitable.
As always, choosing the best financial path depends on your personal circumstances.
If you do buy a house, it is always important to appreciate that your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.
Help with ISAs
Selecting ISAs or other financial products should never involve hasty decisions. Our ethos is to sit down, listen, listen some more, and then talk.
We believe it’s really important to understand what you want and need from life. Then we can help you make informed decisions about money.
Where ISAs are concerned, we’ll help you assess which products will enable you to achieve your goals.
Logic Wealth Planning offers independent financial advice on pensions, mortgages, savings and estate planning. Whatever your stage of life, we aim to make the process hassle and jargon-free.
If you’d like help selecting the right ISA now or in the future, please get in touch.
Give us a call on 0808 1234 321 (freephone) or email firstname.lastname@example.org to arrange a no-pressure chat with our team of advisers.