Can I Put My Help to Buy ISA Bonus towards the Deposit?
You can’t put your Help to Buy ISA government bonus towards your deposit, but you can use the money you’ve already saved in your ISA to pay for the deposit when you exchange contracts.
The bonus will usually be paid after the exchange of contracts and once the transaction is confirmed. While you can’t use the bonus for your deposit, you can put it towards the value of your property, meaning it’ll reduce the amount you’ll need to borrow on your mortgage.
We understand that buying your first home can feel daunting and there can be a lot of information to take in and deadlines to meet. Our Conveyancing Solicitors can walk you through the process from start to finish, and explain everything to you in straightforward terms. Even though we’ll apply for the government bonus on your behalf, we’ll still keep you informed every step of the way.
Get in touch to see how we can help you.
Am I Eligible for a Help to Buy Government Bonus?
The government bonus is 25% of the closing balance of your Help to Buy ISA. The minimum amount that you’ll get is £400 and the maximum is capped at £3,000. To get the minimum amount of £400, you’ll need to have saved at least £1,600.
You’ll be eligible for the government bonus as long as:
- You opened a Help to Buy ISA account before 30th November 2019
- You’re a first-time buyer
- You’re aged over 16
- The property costs below £250,000 (or £450,000 in London)
- You’ll be using this property as your primary residence
- You’re using a mortgage to buy the property
- The bonus is claimed before the deadline of 1st December 2030
How Do I Claim the Help to Buy Bonus?
Only a Solicitor or Conveyancer can claim the government bonus for you. To apply for the bonus, we’ll need you to provide us with a closing statement from your Help to Buy ISA account. You can get the closing statement from your ISA manager once you withdraw the funds in your account.
Without this closing statement, we won’t be able to claim the government bonus for you. Once we’ve done the application, it can take up to 5 business days for the funds to arrive. The funds are sent to us as your Solicitor and are held in our client account.
If you’re planning on exchanging and completing on the same day, and you still want to apply for the government bonus, it’s important to speak to your ISA manager and Solicitor or Conveyancer as soon as you can. In certain circumstances, if you can’t get a closing statement in time, a statement from your Help to Buy ISA account may be accepted.
How Much Does the Help to Buy ISA Bonus Application Cost?
At Simpson Millar, we charge £50.00 plus VAT for the Help to Buy ISA bonus application. As ‘Open Lawyers’, we’ll always be transparent about our Conveyancing fees, so you don’t have to worry about being caught out by any hidden charges.
We also offer a Fixed Fee Conveyancing Quote, where we’ll give you an accurate quote for buying a home, free of charge. On top of this, we work on a No Sale, No Fee guarantee, which means you won’t pay any legal fees until you exchange and complete.
Time Limits for Claiming the Bonus
The government bonus needs to be claimed within 12 months of closing your account and before you complete the purchase of your property.
If you’re worried about deadlines, our Conveyancing Team are here to reassure you, and we’ll make sure you’re given plenty of notice of any upcoming deadlines.
As we’re registered with the Help to Buy Scheme, we’ve supported many first-time buyers successfully claim their government bonus and move into their first home. Get in touch with our expert Conveyancers today to see how we can help you.
Simpson Millar Solicitors are a national law firm with over 500 staff and offices in Bristol, Cardiff, Lancaster, Leeds, Liverpool, London and Manchester.