Chancellor George Osborne has, on the 01 November, clarified the way in which the Help to Buy ISA will be cashed in.
Savers with a Help to Buy ISA, having saved up and gathering up the government’s boost through the ISA scheme.
When a person saving on the scheme comes to close the ISA deal, and use the money to purchase a home, the money from the government needs to be added. Until this point, it was unclear how this would work.
Osborne announced that when the ISA account is closed, buyers will receive a closing letter from their ISA manager, a letter which must then be given to the solicitor dealing with the property sale.
The solicitor will then apply on behalf of the buyer and will then get access to the bonus to use to buy the property.
Mr Osborne said: “We’re just one month away from the launch of the Help to Buy ISA, which will provide extra help for working people who want to buy their own home.”
The launch of the scheme is very soon, having been announced last year, it will become available from the 06 December, and will allow savers to put away £200 per month in savings, which will then be boosted by the government by 25 per cent, up to a maximum of £3,000. It is a drive to help people save up enough cash to jump the ever difficult deposit-hurdle.