Help to Buy: ISA

Your first home could be closer than you think

Boost the funds for your first home

Get a bonus of up to £3,000 from the UK government to put towards your first home

Get up to £6,000 if you're buying a house with someone else and your both first time buyers saving in a Help to Buy: ISA

Available for properties that cost up to £450,000 in London and £250,000 elsewhere in the UK

Kickstart your savings by saving up to £1,200  in the first calendar month and then pay in up to £200 per calendar month after that

Earn 2.50% AER / 2.47% tax-free interest on your savings

Overview

The UK Government will give you a bonus worth 25% of what you have saved when you are ready to buy your first home.  You need to have saved at least £1,600 to qualify and the maximum savings that can qualify is £12,000.  This money goes towards the completion cost of buying your first home, not towards your deposit.

When you are ready to buy your first home request to close your NatWest Help to Buy: ISA and once closed we will send you a Closing Document that you conveyancer (e.g. solicitor) will need to claim the bonus from the UK Government. Do not withdraw funds before closing your account and please allow 5 days for account closure and a further 5 days for the Closing Document to be sent.

Read the full rules of the Help to Buy: ISA scheme.

Summary Box

Account name: Help to Buy: ISA

What is the interest rate?

Interest is calculated daily and paid into your account on the first business day of the month and at account closure. You'll be able to see and access the interest in your account on the following day.

Can NatWest change the interest rate?

Yes, these rates are variable. They may be changed for any of the reasons set out in General Term 9.2 of the Savings Account Terms (PDF, 605k), e.g. to take account of Bank of England base rate changes or changes in the rates paid by other banks. If the rates are going down we’ll give you at least 14 days’ notice. If they are going up, we’ll inform you before the change or shortly afterwards. Term 9.2 (PDF, 605k) contains details of the notice we’ll give you.

What would the estimated balance be after 12 months based on a range of deposits?

These are only examples and do not take into account your individual circumstances. They assume that no further deposits or withdrawals are made; there is no change to interest rates; and any interest earned stays in the account.

How do I open and manage my account?

Your eligibility

To open a Help to Buy: ISA you must:

be aged 16 years or over 

be resident in the UK for tax purposes

be a first time house buyer, under the Government's Help to Buy: ISA Scheme Rules

hold the account solely in your name

You must:

not have subscribed to another cash ISA or have subscribed more than the overall subscription limit in total to a stocks and shares ISA an innovative finance ISA or a lifetime ISA in the same tax year (subject to subscribing to a NatWest cash ISA explained below)

not hold another Help to Buy: ISA or have received a bonus under the Help to Buy: ISA Scheme, which is part of a UK Government Scheme to help individuals to buy their first home

Our Help to Buy: ISA Key Features document includes information about the scheme and how to access the Scheme Rules which contain detailed requirements relating to opening and operating a Help to Buy: ISA.

If we become aware after your account is open that you are not eligible under the Help to Buy: ISA Scheme Rules, we may convert your account to a Cash ISA with 28 days notice.

Subscribing to both a NatWest cash ISA and a NatWest Help to Buy: ISA

You may subscribe to another cash ISA in the same tax year as you subscribe to a Help to Buy: ISA provided that:

the other cash ISA is held with us and 

you don’t subscribe more than the annual subscription limit between the Help to Buy: ISA and the other cash ISA

The annual subscription limit for the tax year 6 April 2018 to 5 April 2019 is £20,000.    

If you already have a current account with us you can open your account on our mobile app, online, in branch or by telephone.

If you don't have a current account with us you can open your account online or on our mobile app (you need to register for online banking before you can get our mobile app).

We will need your email address and mobile number to open your account.

You can manage your account on our mobile app, online, in branch or by telephone.

Balance and ISA allowance

There is no minimum deposit required to open a Help to Buy: ISA.

You can deposit a maximum of:

£1,200 in the first calendar month you make a deposit to your Help to Buy: ISA; and

£200 in every subsequent calendar month thereafter

Transferring an existing ISA to a Help to Buy: ISA

You may transfer an existing: 

cash ISA to a Help to Buy: ISA providing you don't exceed the maximum monthly allowances or

Help to Buy: ISA with another ISA manager to your NatWest Help to Buy: ISA provided that your full balance is transferred and your existing Help to Buy: ISA is closed

Full details can be found at natwest.com/isatransfer

Can I withdraw money?

Yes. No notice is required. You can withdraw money: in branch or by transfer to any other account based in the UK (online, by telephone or on the mobile app). 

However, due to the monthly subscription limit you will only be able to make payments up to £200 a month in total so by making withdrawals you may reduce or take longer to save for your bonus.

Please note that you will not be able to claim the Government bonus on any money you have withdrawn from your Help to Buy: ISA.

You can transfer your Help to Buy: ISA to another ISA manager.

Additional information

Closing your Help to Buy: ISA and claiming your bonus

When you are ready to buy your first home you must request to close your Help to Buy: ISA. You can do this over the phone, or by giving written notice to your branch either by post or by handing it in. Any withdrawals you make before closing your account will reduce the value of the bonus you can claim.

We will then arrange to close your account, which can take up to 5 working days.

Within 5 working days of your account being closed, we will send you a Closing Document, which your conveyancer (the party acting on your behalf to purchase the property) will need to claim the 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 your closing balance must be at least £1,600 in order to obtain a bonus, so opening an account does not guarantee you will be entitled to a bonus. The maximum bonus you can earn is £3,000.

Additionally, there is a maximum property price beyond which a bonus will not be payable

For more information on the Help to Buy: ISA Scheme (including how to claim your bonus from HM Treasury), please refer to our Help to Buy: ISA Key Features at natwest.com/keyfeatures/helptobuyisa or see the Help to Buy: ISA Scheme Rules at www.helptobuy.gov.uk/isa.

 

Tax:

The interest payable is tax-free. The tax treatment may be subject to change in the future and depends on your individual circumstances.

 

Definitions

AER: This is a notional rate used for interest bearing accounts which illustrates the interest rate if paid and compounded each year. It helps you to compare the effective rates of credit interest on different accounts.

Gross: The interest rate you are paid without the deduction of UK income tax.

p.a.: per annum (per year)

Get off to a fast start

Why not let us do the saving for you? Tell us you'd like a regular payment or an instant transfer in your application, and we’ll set it up for you – that’s one less thing to think about. It’s a great habit to start.

We'll send you an email when your statements are ready to view in Online Banking. You can check it whenever you want.

Ready to apply?

Are you...

Please make sure...

You have a National Insurance number. You’ll find it on your payslip, P60 or any letters from HMRC.

You have never owned a residential property or had any interest in land in or outside the UK

You’re at least 16 years old and a permanent UK resident, or a Crown Servant serving overseas, their spouse or civil partner.

You have a phone number and email address we can contact you on.

 

And now for the important information...

Important Information

Please take some time to review, print and/or save the important information. By clicking to proceed you are confirming that you have been provided with, and have acknowledged our important documents including the FSCS information sheet.

How your information might be used

It’s important for you to understand how we use and share your information Please read this short summary before you continue with your application.

 

Have you read and understood all of the important information?

Great. Let's get your application started.

Do you use online banking?

Make sure you have...

You have a National Insurance number. You’ll find it on your payslip, P60 or any letters from HMRC.

You have never owned a residential property or had any interest in land in or outside the UK

You’re at least 16 years old and a permanent UK resident, or a Crown Servant serving overseas, their spouse or civil partner.

You have a phone number and email address we can contact you on.

 

And now for the important information

Important information

Please take some time to review, print and/or save the important information. By clicking to proceed you are confirming that you have been provided with, and have acknowledged our important documents including the FSCS information sheet.

How your information might be used

It’s important for you to understand how we use and share your information Please read this short summary before you continue with your application.

 

Have you read the important information?

Great let's get your application started

Please make sure ...

You have a National Insurance number. You’ll find it on your payslip, P60 or any letters from HMRC.

You’re at least 16 years old and a permanent UK resident, or a Crown Servant serving overseas, their spouse or civil partner.

You have a phone number and email address we can contact you on.

 

And now for the important information ...

Important Information

Please take some time to review, print and/or save the important information. By clicking to proceed you are confirming that you have been provided with, and have acknowledged our important documents including the FSCS information sheet.

How your information might be used

It’s important for you to understand how we use and share your information Please read this short summary before you continue with your application.

 

Have you read the important information?

Great. Let's get your application started?

Getting you ready for home ownership

Help to Buy: ISA at a glance

Use our Help to Buy: ISA infographic to understand how the government scheme could work for you.

 

First time buyers' guide

You’ll find everything but your new kitchen sink in our guide to buying your first home.

 

Mortgages

When you’re ready to start your search, explore your borrowing options with our mortgages for first-time buyers.

 

Financial Services Compensation Scheme

Your eligible deposits with NatWest are protected up to a total of £85,000, by the Financial Services Compensation Scheme, the UK's deposit guarantee scheme.

Find out more about the scheme and how it protects your money.

Something else we can help you with?