Help to Buy ISAs are one of the most popular ways that people can save money in order to make their first steps on the property ladder.
However, with the deadline for the schemes looming, those who are thinking they may want to buy a house in the near future will need to act fast.
A Help to Buy ISA is a type of savings account where savings are topped up by the government by 25 per cent in a bid to get people started in the housing market. The most a government will top your savings up by is £3,000.
They are only available to people who intend to live in the houses they buy, and who do not own any other homes.
What can you do with Help to Buy?
The value of the property you are saving for is also capped at £250,000 – or £450,000 – in London.
When you open a Help to Buy ISA you can put in an initial deposit of anything up to £1,200, and payments after that can be up to £200 per month. The bonus from the government is then applied for when the account holder decides to use the money saved up to buy a house.
However, this kind of savings account and help from the government is not going to be available forever.
The Help to Buy ISA website says that you will only be able to apply for the scheme before November 30 this year.
I already have a Help to Buy ISA – will it still work?
After this date they will not be available to new savers, however people who have already set one up then it will still be active and valid until 30 November 2029.
However after the 2029 date, any unused Help to Buy ISAs will close to additional contributions. And any Help to Buy ISAs will have to be used by December first 2030 in order to claim the government top-up. The 25 per cent bonus will not be available after that date.