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
We look at why mortgage rates increased following the Bank of England's choice to reduce the bank rate, and should you fix now?
UK 2024 Autumn Budget: Housing
21 days ago
On 30th October 2024 the Chancellor, Rachel Reeves delivered the Autumn budget which we had previously been warned would be “difficult”. Below we have summarised the main housing points.
Talking about money with kids
28 days ago
In an increasingly cashless society, money is an intangible concept for children to grasp. In the days of coins and notes, kids could see money as something physical you require to purchase goods and services.
In order to help teach your children about money, we have listed some tips below;
Labour Autumn Budget Predictions: Housing
18 Oct 2024
The UK’s chancellor, Rachel Reeves will deliver the Labour government’s autumn budget at the end of the month, we take a look at what could be announced in relation to housing.
Recent research from Halifax has revealed the most sought-after locations for first time buyers in Britain.
The data which was taken from the Halifax House Price Index looked at areas outside of London where those looking to purchase their first property were buying. Despite high property prices and increased rates, these first time buyer hotspots have remained popular.
How can I look after my mental health?
7 Oct 2024
Taking care of your mental health means looking after your emotional, psychological, and social wellbeing. There are several ways we can practice self-care that will help to improve our physical and mental health. This can help to reduce our risk of illness, manage stress, and boost our energy levels!
First Time Buyer to do List
4 Oct 2024
Buying your first home is very exciting but it can also be very daunting which is why we have set out a “to do list” to help you get started.
Bank of England Holds Base Rate at 5%
20 Sep 2024
With UK inflation remaining at 2.2% which is slightly above the Bank of England’s 2% target, the decision was made on Thursday 19th September to keep the base rate at 5%.
More information
Trusted by
