Just as all memories of the “Help to Buy” ISA announced in the last budget were fading, the Treasury has named the first six banks and building societies that will offer first time buyers said “Help to Buy ISA.” The Treasury has confirmed that the list is not intended to be exhaustive and that there is still time for other providers to join the scheme and offer the account to savers.
At the time of going to print, the providers chosen to participate in the scheme are: Barclays, Lloyds Banking Group, Nationwide Building Society, NatWest, Santander and Virgin Money.
While first time buyers will not be able to open an account until the 1 December 2015, anyone wanting to start an account is being advised to start saving now in order to be able to deposit the maximum initial sum of £1,000 on the day it opens.
A quick reminder of how it works:
If you’re a first time buyer, save up to £200 a month towards your first home with a Help to Buy ISA and the government will boost your savings by 25%. That’s a £50 bonus for every £200 you save. You can receive a bonus of up to £3,000.
Once you have opened an account there’s no limit on how you long you can save for. You can make an initial deposit of £1,000 when you open the account – in addition to normal monthly savings of up to £200 a month.
Accounts are limited to one per person rather than one per home – so those buying together can both receive a bonus.
The maximum bonus size is limited to £3,000 per person and will be available on home purchases of up to £450,000 in London and up to £250,000 outside London, the maximum. Basically, if you save £12,000, the government bonus will boost your total savings to £15,000! What’s not to like!
(Accounts will be available through banks and building societies from Autumn 2015).
For more information or to speak to an advisor contact us on 01628 507477.
See our related articles: 'Help to Buy ISA' and 'Happy Birthday Help to Buy'.
Recent posts
The average age of a first-time buyer in the UK is two years older than 10 years ago. This is understandable with managing the cost-of-living and challenges within the economy such as high interest rates making it difficult to get onto the property ladder.
Delayed Start Mortgage from Skipton
2 days ago
Skipton Building Society launches ‘Delayed Start’ mortgage meaning first time buyers won’t be required to make repayments for the first three months.
According to a survey by Skipton, first time buyers who bought their home in the last five years found that in the first three months of living there, they were spending upwards of £30,000.
Gardening Tips for Beginners
7 days ago
If you have recently moved into a property with a garden that requires a little TLC, or you’d like to get on top of your current green space, check out our tips.
The Family-Backed Mortgage from NatWest
10 days ago
High street lender, NatWest, have launched a new product to help first-time buyers purchase a property with assistance from a family member or friend to get them on the property ladder sooner.
The Impact of Klarna on Mortgage Applications
11 days ago
‘Buy Now, Pay Later’ (BNPL) schemes, such as ‘Klarna’ are short-term loans that allow shoppers to make a purchase, but delay paying for it for an agreed amount of time.
Klarna is one of the most popular BNPL services with 18 million customers in the UK alone, and offers interest-free payment options which is appealing to shoppers. However, does it affect a mortgage application?
Buy to Let mortgages: what's happening?
16 days ago
We look at how to get the best Buy to Let mortgage rate, what's in store going forward, and options as a landlord with increasing costs.
UK mortgage rates following Trump’s Tariffs
25 days ago
Throughout this past week, lenders have continued to reduce their mortgage rates giving borrowers in the UK some welcome news following the change in global tariffs under US President, Donald Trump.
Effective ways to relieve stress
25 days ago
Did you know that buying a house, or relocating is in the top 10 most stressful life events?
Stress of course is an unavoidable part of life and there are many reasons why people experience stress, not just buying a house!
There are lots of effective ways to manage and reduce stress, check out our tips to help you.
More information
Trusted by
