As part of the 2015 budget the government have announced plans to introduce Help to Buy ISAs to make it easier for would-be first-time buyers to save up the money for a deposit. The scheme will allow people to save towards a deposit then, when they are ready to put it towards a house, the government will give them an extra 25% of the total they have saved as a bonus. There are some limitations on how much you can save and how you can use the money, however, so if you are interested in the scheme, please read on.
How much you can save
You can save up to £200 a month towards a maximum total of £12,000 and there is no minimum monthly amount you need to pay in. You can also make an initial deposit of up to £1000. Whatever the final amount you save, the government will give you an extra 25%. This means if you save the full £200 a month, you will get an additional £50 a month for free. If you managed to save the maximum £12,000 you would end up with an extra £3,000 in total.
What you need to know
The new ISAs are only available to people over the age of 16 who are first time buyers and will be available from autumn 2015 at various banks and building societies. The scheme will be open to new savers for the next four years, however, once you have started a Help to Buy ISA there will be no limit on how long you can keep saving.
The bonuses are only paid when you use the money from your ISA to buy a home and can only be used on properties up to a value of £250,000 (or up to £450,000 in London). On the plus side, the scheme works on a per person basis, rather than be restricted to one per property, so two or more people planning on buying somewhere together can each get a Help to Buy ISA and receive their bonus for the same property.
Whether you are getting your first foot on the property ladder, stepping up or down a rung, or are just renting, Intransit can help make your move smoother. To ask for a quote or to set up a consultation, call today on 01225 759200.