Will my son get his 25% Isa top-up as a mortgage-free property owner?

25 April 2017


My son has a Help-to-Buy Isa worth £3,000 and he wants to buy a house worth £75,000. He doesn’t need a mortgage as I am going to give him the money he needs.

What I would like to know is: will the government still give him his 25% Isa top-up if he doesn’t need a mortgage?




I’m afraid that your suspicions are correct. Because your son will be a cash buyer he is not eligible for the Help to Buy government top-up. This means that he will miss out on £750 based on the £3,000 balance of his Help to Buy Isa.

The government bonus is only paid out to people buying their first home with a mortgage. In order not to miss out on the bonus, your son may want to consider taking out a small mortgage on the property. Just make sure you don’t end up paying more in interest and mortgage fees than the bonus.

Of course, as the money is in a Help to Buy Isa, he should still be earning interest on the funds.