The Help to Buy ISA for first-time buyers will close on November 30.
That means first-time buyers have only two weeks in which to open an account. That will also ensure they pick up a Government cash bonus to go towards a house deposit.
The individual savings account has been available since 2015 as part of a package of measures to boost home ownership.
Tax-free bonus boosts deposit
Newcomers to home ownership can receive up to £3000 tax free from the Government to boost their own savings.
However, the Help to Buy ISA will close to new customers at the end of this month – Santander is to close its Help to Buy ISA on November 28 – so time is of the essence if you don’t already have an account.
While the scheme will close to new customers, anyone who has a does open an account will have until 2030 to claim their tax-free bonus.
Help to Buy ISA replaced by new product
First-time buyers can open an individual savings account with a maximum lump sum of £1200 and save up to £200 a month. Couples intending to buy together should each open their own savings account to boost their tax-free bonus.
When you’re ready to buy your first home, you can claim your 25 percent tax-free Government bonus.
The Help to Buy ISA, which is available from all major high street banks, building societies and other lenders, has effectively been replaced by the Lifetime ISA (Lisa).
While a Lisa offers the same 25 percent Government bonus, you’ll have to pay a big exit fee when you withdraw the funds unless you’re using the cash to buy a home.