On Wednesday 18th March, Chancellor of the Exchequer George Osborne delivered to the UK his last Budget of the Parliament and introduced the new Help to Buy ISA Scheme.
The scheme will be available in Autumn 2015 through banks and building societies to all first time buyers over the age of 16 who wish to boost their savings for a home purchase deposit. New accounts will be available for 4 years but once opened, have no limit on how long the owner can save for.
Account owners who deposit savings of up to £200 a month towards their first home with a Help to Buy ISA account will have their savings matched by 25% – a £50 bonus for every £200.
A maximum of £12,000 can be saved, which means that the government incentive will boost total savings to £15,000 if the maximum deposit is achieved.
There is, however, a limit imposed on these accounts. An initial £1,000 + £200 normal savings deposit can be made into the account when initially opened but after this, there is a maximum limit of £200 per month. The scheme can be used on homes up to £250,000 and the bonus to your savings is paid upon purchase of the chosen property.
Ed Balls, Shadow Chancellor, stated that Labour would not reverse George Osborne’s budget measures should Labour come into control over the Conservative Party after the upcoming general election (Source: The Telegraph).
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