Save for your first home with the Help to Buy: ISA
When you pay into a Help to Buy: ISA, the government will give you a 25% tax-free bonus on balances up to £12,000 when you buy your first home.
The Help to Buy: ISA lets you:
Only one Help to Buy: ISA is allowed per person, but if you're buying with another first time buyer you can each open a Help to Buy: ISA and claim individual bonuses for the same property.
The favourable tax treatment of ISAs may change in the future.
Please read the full product details and terms & conditions before applying. Other accounts are available; see our ISA range to find out more.
Saving with a Help to Buy: ISA
To apply for a Help to Buy: ISA you must be:
You'll earn 1.50% AER/tax-free (variable) interest, or 2.00% AER/tax-free (variable) interest if you're a 1|2|3 World or Santander Select customer. Plus, you'll receive a 25% government bonus when you buy your first home (subject to Help to Buy: ISA limits).
Interest is paid annually in March. Interest payments are not counted towards the monthly deposit limit, but are counted towards the bonus calculation.
You can only pay in to one cash ISA, one stocks and shares ISA, one innovative finance ISA or any combination of the three each tax year.
Funding your ISA
You can open a Help to Buy: ISA with no initial deposit and in the first calendar month you make a deposit, you can pay in up to £1,200. After the first month of funding you can deposit up to a maximum of £200 each calendar month.
For example, if you open your Help to Buy: ISA in June with no initial deposit and decide to deposit £500 in August, you'll have until 31 August to pay in up to another £700 (totalling the initial deposit limit of £1,200). The following month you'll be able to pay in a maximum of £200.
It's important you make sure payments to your Help to Buy: ISA reach us by the end of the calendar month. If they don't, they will count towards the following month's allowance.
Standing order payments will only be sent Monday to Friday so please make sure that your standing order gives you enough time for your payment to reach your Help to Buy: ISA before the last day of the month.
Transfers from bank accounts can take 2-4 hours and are sent Monday to Friday. Please make sure your transfer gives you enough time for your payment to reach the account on or before the last day of the month.
Cash/cheque deposits will count towards the monthly allowance determined by the date you pay them in.
If your deposit takes you over the monthly limit of £200 or the initial deposit limit of £1,200 it will be rejected in full and the bank you sent it from may charge you for taking it back.
Here are a few examples of the bonus amount you can receive based on your Help to Buy: ISA balance:
|Amount Saved||Eligible Government Bonus|
|Less than £1,600||£0|
|£1,600||£400 (minimum bonus)|
|£12,000+||£3,000 (maximum bonus)|
You can get the bonus on home purchases of up to £250,000 outside London and up to £450,000 in London.
How to claim your bonus
When you're ready to buy your property you should follow these steps:
request to close your Help to Buy: ISA. We'll then send you a closing statement to your address which will confirm the closing balance of the ISA
you'll have to provide your conveyancer* with your closing statement so that they can arrange to claim your 25% government bonus. The conveyancer will then pay the bonus to the seller of your first home as part of the purchase price.
You can't use your 25% government bonus for the deposit due when you exchange (when the buyer is normally asked to pay a 10% deposit a few weeks before completion of the sale). The bonus can only be used at completion, where the conveyancer will pay the bonus to the seller as part of the purchase price.
* A conveyancer is a specialist lawyer who specialises in the legal aspects of buying and selling property.
You have 12 months from the date your Help to Buy: ISA is closed to submit the closing statement to your conveyancer.
You can close your account by calling us, visiting a branch or by writing to us at: Santander, Account Closures, PO Box 1109, Bradford BD1 5ZL.
You won't be able to claim the government bonus on any money you withdraw before you close your Help to Buy: ISA. Any money that you withdraw from your Help to Buy: ISA will lose its tax-free status. If you repay it back into the Help to Buy: ISA it will count towards your monthly deposit limit and your annual ISA limit.
Help to Buy: ISA journey
|1. Open your ISA||No minimum deposit required, so the balance can be £0.00|
|2. Make your first deposit||Up to £1,200 in the calendar month when you first choose to pay in to the account|
|3. Make payments||Up to £200 per calendar month|
|4. Close your ISA||When you're ready to purchase your first property, contact us to close your ISA and we'll send you a closing statement|
|5. Claim the bonus||Give your closing statement to your conveyancer who will claim the bonus on your behalf|
For further information take a look at the government's Help to Buy: ISA pages
Transferring a Help to Buy: ISA from another provider to Santander
Transferring from a cash ISA you've already funded to a Santander Help to Buy: ISA
However, as the maximum initial deposit is £1,200, if you've already paid more than £1,200 into a cash ISA in the current tax year you can fund a Help to Buy: ISA using money you put into a previous tax year's ISA subject to the monthly subscription limits (up to £200 per month).
To transfer from a cash ISA to your Help to Buy: ISA, please fill in our transfer form
If you transfer an ISA in full to Santander and have built up previous tax year flexible allowances with your current provider, you'll lose that allowance when you move to Santander. If you want to use the flexible allowance you should re-deposit into your existing ISA before you transfer it to Santander.
Watch our Online Banking videos to learn more.
Watch our Mobile Banking videos to learn more.
There is no cash card or passbook for this account. A Help to Buy: ISA Certificate will be issued to you in the post after account opening.
Buying your first home
When you are ready to purchase a property, you must request full closure of the Help to Buy: ISA in order to claim the government bonus. A closing statement will then be sent to you which you must give to your conveyancer who will then claim the bonus on your behalf. You have 12 months from the date of closure to submit the closing statement to the conveyancer to claim the bonus for the purchase of your property.
You can close your account by calling us, visiting a branch or to close your account by post please write to: Santander, Account Closures, PO Box 1109, Bradford BD1 5ZL.
Everything you need to know before you apply
We recommend reading the information in the documents below before you apply. You may like to save or print them so you can refer to them in the future.
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Please read the full product details and terms and conditions before applying.
You can apply for the Help to Buy: ISA if you are:
If you have saved more than £1,200 in another cash ISA this tax year, there may be additional steps you can take to meet the eligibility requirements. For more information, see the ISA transfers tab.
Apply by phone
Call us on 0800 587 2764. We're open 8am to 9pm Monday-Friday and 8am to 4pm Saturday.
Apply in a branch
Find your nearest branch or call 0800 085 1553 to make an appointment. We're open 8am to 9pm Monday to Friday and 8am to 4pm Saturday.
To get a higher rate of interest on your Help to Buy: ISA you must also be a 1|2|3 World or Santander Select customer.
A Santander 1|2|3 World customer is someone who holds one of our 1|2|3 current accounts, 1|2|3 Credit Card (including additional card holders) or the 1|2|3 Mini Account (in Trust). Trustees are not classed as 1|2|3 World customers. All customers must meet the eligibility for each product and 1|2|3 World offer. Find out more about 1|2|3 World
To join Santander Select you must have a current account with Santander and meet one of the following criteria: pay your main income of at least £5,000 per month into a Santander current account (excluding transfers from other Santander accounts), or maintain £75,000 in any Santander investment(s), savings or current account, or have a property worth at least £500,000 with a Santander mortgage. Find out more about Santander Select
Rates and information correct as at 28 September 2016.
When you choose to close your Help to Buy: ISA (including transferring out in full to another cash ISA), you will be eligible to claim within 12 months of the date of closure a 25% government bonus on the balance of the account towards the purchase of your first home. Maximum bonus of £3,000 per person and minimum bonus of £400 per person applies.
You can make withdrawals from the account using branch or telephone and view the account in Online and Mobile Banking.
You won't be able to claim the government bonus on any money you withdraw before you close your Help to Buy: ISA. Any money that you withdraw from your Help to Buy: ISA will lose its tax-free status and if repaid back into the Help to Buy: ISA will count towards your monthly deposit limit and will count towards your annual ISA limit.
When we’ve received the completed form from you, we’ll need to contact your existing provider, so please allow up to 15 days for a Help to Buy: ISA transfer to take place, starting from when we have received the transfer form.
To transfer your Santander Help to Buy: ISA to another provider, you’ll need to contact your new ISA provider.
Transfers to your Help to Buy: ISA from stocks and shares ISAs are not allowed.
Transfers to your Help to Buy: ISA from an innovative finance ISA are not allowed.
You can only subscribe to one cash ISA, one stocks and shares ISA, one innovative finance ISA or any combination of the three each tax year. Funds paid into an ISA in the current tax year must be transferred in full. Any funds paid into an ISA in previous tax years can be transferred to an ISA, including your Help to Buy: ISA in full or part, subject to Help to Buy: ISA monthly limits.
The bonus will be available on home purchases of up to £250,000 outside London and up to £450,000 in London. Boroughs classified as London for the purposes of the Help to Buy: ISA are:
The City of London, Camden, Greenwich, Hackney, Hammersmith and Fulham, Islington, Kensington and Chelsea, Lambeth, Lewisham, Southwark, Tower Hamlets, Wandsworth, the City of Westminster, Barking and Dagenham, Barnet, Bexley, Brent, Bromley, Croydon, Ealing, Enfield, Haringey, Harrow, Havering, Hillingdon, Hounslow, Kingston upon Thames, Merton, Newham, Redbridge, Richmond upon Thames, Sutton and Waltham Forest.
If the purchase of your house falls through, you are entitled to re-open your closed Help to Buy: ISA and re-deposit the funds removed at closure within 12 months of the closure date of the account. This is subject to you providing us with a Purchase Failure Notice which will be provided by the conveyancer in charge of the house purchase.
Your Help to Buy: ISA reinstatement subscription can be paid into a new or existing cash ISA, stocks and shares ISA or an Innovative Finance ISA and only a single reinstatement subscription will be allowed.
To re-instate your Help to Buy: ISA, simply complete and send us the Help to Buy: ISA Re-Instatement Form along with the required documents stated on the form. Alternatively, you can visit your local Santander branch
If you change your mind within 14 days of opening this ISA you can cancel it and the money will be returned to you in full with interest and without penalty.
If you transfer in funds from your existing ISA and subsequently cancel the account, your existing ISA provider may not accept the return of the ISA funds. In this case you can either continue to save with us or transfer your ISA in full to another provider. You will need to contact your new ISA provider to arrange the transfer. If you don't exercise your right to cancel; the cash ISA will continue with us.