Help to Buy: ISA
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Terms and conditions apply. Available to first time buyers who are aged 16 and over and Resident in the UK.
Help to Buy: ISA
Saving a deposit to buy your first home can be a challenge, but now there's a way you can get a helping hand.
With our new Help to Buy: ISA, when you purchase your first home the UK Government will pay you a bonus of 25% of your closing savings balance e.g. £50 for every £200. So you could get up to £3,000 towards your first home.
You can kick start your Help to Buy: ISA when you open it by putting in up to £1,200 in the first calendar month. After that you can save a maximum of £200 a month.
The need to knows
- Available to first time buyers aged 16 or over who are UK residents and have never owned a residential property or any interest in land in or outside the UK
- Save up to £1,200 in the first calendar month and then up to £200 per month thereafter. Please note that the later in the month you first fund the less time you will have to add further funds. E.g. – if you first fund with £200 on 30 May 2016, you only have until 31 May 2016 to add up to another £1,000.
- The maximum property price a bonus will be paid on is £450,000 in London and £250,000 elsewhere in the UK.
- The UK Government will pay a bonus of 25% of your closing savings balance. The minimum bonus is £400 on a closing balance of £1,600 and the maximum bonus is £3,000 on a closing balance of £12,000. E.g. - if you have a closing balance of £8,000, the UK Government will pay you a bonus of £2,000.
- Transfer in of other ISAs allowed, please click here for further information about ISA transfers
- The interest rate is variable, so it can go up as well as down.
- Tax-free interest and tax free savings means that interest payable is exempt from UK income tax.
- Save in both an Ulster Bank cash ISA and an Ulster Bank Help to Buy: ISA in the same tax year providing between the two accounts you do not exceed the overall ISA allowance (£15,240 for 2016/2017). E.g. if you save £2,000 in your Help to Buy: ISA, the maximum you could save in your regular cash ISA is £13,240.
- When you have found a property to purchase and received your mortgage offer there are four steps to complete to claim your bonus:
- Request to close your Ulster Bank Help to Buy: ISA. You can do this in branch, over the phone or in writing. Do not withdraw your savings before the account is closed as the bonus will be calculated on your closing balance.
- You will receive a Closing Document within 7 days of the account being closed.
- You must give your Closing Document to your conveyancer (i.e. solicitor) who will claim the 25% bonus from the UK Government. You have up to 12 months from closing your Help to Buy: ISA to claim your bonus but this should be done as soon as possible to make sure the bonus is received before you are due to complete the purchase of your new home.
- The bonus will be paid directly to your conveyancer, who will add it to your deposit and mortgage funds to make up the total purchase price of your new home.
Please note: You will need your National Insurance number during the application.
|Transfer in||Balance||AER (variable)||Tax-free p.a. (variable)|
Annual Equivalent Rate (AER)
Tax-free interest means interest payable is exempt from UK income tax.
Mobile Banking. Should you decide you would like the added option to easily manage your Help to Buy: ISA with our app, you can download the app here. It's easy to set up and top-up through the app.
Mobile Banking is available on selected smartphones to Ulster Bank personal account customers, with Online Banking, a debit card, and a UK mobile number.
Who is the Ulster Bank Help to Buy: ISA for?
Anyone who's saving towards buying their first home who's a UK resident for tax purposes, aged 16 and over.
Can I save in a Help to Buy: ISA as well as a regular ISA?
You can as long as both ISAs are with Ulster Bank. We'll allow you to save into both a Help to Buy: ISA and a 'regular' cash ISA in the same tax year as long as your overall ISA savings (including any other stocks and shares ISA fund you may have) don't exceed your annual ISA allowance. In the 2015/16 tax year this is £15,240.
As an example, you could save £2,000 in your Ulster Bank Help to Buy: ISA and up to £13,240 in a 'regular' Ulster Bank ISA.
Are there limits on the bonus I can get with the Help to Buy: ISA?
Yes - there are minimum and maximum savings amounts to qualify.The minimum savings amount is £1,600 - this would give you a bonus of £400.The maximum savings amount is £12,000 - this would give you a bonus of £3,000
Transferring your ISA
If you have an ISA with another provider, you can make it easier to manage your cash ISAs by transferring them to Ulster Bank. To help you do this, we have a simple transfer process that safeguards your tax-free entitlement. Tax- free interest means that interest payable is exempt from UK income tax.
Your eligible deposits with Ulster Bank Limited are protected up to a total of £75,000 by the Financial Services Compensation Scheme, the UK’s deposit guarantee scheme. Any deposits you hold above the limit are unlikely to be covered.
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