The 25% bonus added to the popular Help to Buy ISA on the purchase of a property with a mortgage for first time buyers, was never designed to be used towards the exchange deposit, it has emerged this week.
In the small print and unbeknown to banks, savers and industry experts, the Government has claimed the bonus would only be made available at completion of the sale not for the exchange of contracts and therefore cannot be considered as part of the deposit needed on the property at exchange.
According to the Mail, more than half a million people have already taken advantage of the tax-free savings account with many undoubtedly bitterly disappointed that the bonus can't be used as part of their much needed exchange deposit. Although you can reduce the amount you need to borrow as the bonus will be made available at completion, given that it's a helping hand to get on the ladder that is so desperately needed, with many first times buyers struggling to raise that all important deposit, this will be of little comfort for those that were depending on it in order to exchange.
The industry is calling it deception having not made this incredibly important point clear when the Chancellor announced the new savings scheme back in March 2015. Or perhaps everyone from providers, savers and industry experts did just missed the point, though we're not convinced.
🔔 Help to Buy ISA confusion?
25th August 2016
@savingschampion
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