Help to Buy ISA closing deadline approaches

The deadline is fast approaching for new applicants to open a Help to Buy ISA.

This Government-backed saving scheme offers first-time buyers up to £3,000 towards a deposit on their first home.

However, new Help to Buy ISAs must be opened by November 30 this year, meaning FTBs have less than six months to take advantage of one of the current HTB schemes.

Parents can open the Help to Buy ISA in their offspring’s name, allowing them to contribute tax-free to their deposit saving.

The Help to Buy ISA is currently running alongside the Lifetime ISA, which will be its long-term replacement, and savers can open accounts in each.

However, the tax-free bonus for a FTB deposit can only be accessed through one of those ISAs.

When FTBs open an ISA, they will receive a tax-free bonus of £250 for every £1,000 saved, up to a maximum of £3,000.

As an ISA is an individual product, a couple or two friends buying together can each have a savings account and add up to £6,000 to their FTB deposit.

There are age limits on both ISAs. The Help to Buy ISA is available to those aged over 16 with no upper age limit. The Lifetime ISA is for those aged between 18 and 39.

Both accounts can be opened with as little as £1.