Over 500,000 Help To Buy ISAs Opened Since Launch
If you are saving to buy your first home, save money into a Help to Buy ISA and the government will boost your savings by 25%. So, for every £200 you save, receive a government bonus of £50. The maximum government bonus you can receive is £3,000.
On the 1st of December 2015 the government launched its Help to Buy ISA scheme to help first time buyers save up a deposit for their homes; and it has since proven extremely popular with people looking to get on the property ladder.
Government statistics reveal that more than half a million people have already opened Help to Buy Isa’s, in a turnout which chancellor George Osborn described as “hugely encouraging”.
The Help to Buy ISA works by the government topping up your savings by 25%, so for every £200 you save; the government will contribute £50. The minimum amount you need to save to qualify is £1600, which immediately grants you a £400 bonus. The most you can get from this scheme is £3000, so the maximum amount you can save in a Help to Buy ISA is £12000.
Moreover, these high in demand ISA’s are not limited to each house; instead they are available to each first time buyer, so if you’re buying a property with your partner, you’ll be able to get up to £6000 contributed towards your deposit; which explains why first time buyers have taken to them so quickly.
The figures also show that 2,090 bonuses were paid under the scheme up until the end of May, and the average value of the bonuses were £421; which has gone towards the completion of 1,490 properties.
The Help-to-buy Isa has been described as a “no-brainer for the time being for those saving toward their first home” by Danny Cox of investment provider Hargreaves Lansdown. Although he goes on to suggest that from April 2017, the more generous ‘Lifetime Isa’ will become the saving scheme of choice.
For more information see our help to buy isa section