Exciting news for first time buyers today, George Osborne has announced the launch of the Help to Buy ISA!
The popular Help to Buy scheme has already gone a long way in helping buyers get their foot on the property ladder and this latest announcement is set to make home ownership even more achievable.
So what is a Help to Buy ISA? The scheme will be available through banks and building societies from this autumn to help buyers save for a deposit. How? By providing a 25% top up on first time buyers’ deposits. This means that for every £200 saved, the government will put in an extra £50, up to a maximum of £3,000.
So, if a buyer saves £12,000 in a Help to Buy ISA, then the government will eventually boost their savings to £15,000!
How does it work? When opening an account, you can make a deposit of £1,000 followed by monthly top ups, and you will receive your bonus once you have bought your first home. What’s more, the accounts are one per person, which means that couples or friends buying together will each receive a bonus.
What does this mean for younger buyers? Help to Buy has been a welcome initiative for first time buyers since its launch, and it’s likely that this exciting new development is set to boost the property market by providing a valuable opportunity for younger buyers to own their first home.
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