Explained – Help to Buy ISA

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).

For more information, click HERE

Latest Posts

Tips To Save You Cash When Saving For A Home

If you’re saving up for a home move and you’re starting to see mentions of the C-word (Christmas) everywhere, it...

How To Continue To Enjoy Outdoor Dining In Autumn

Having spent three lockdowns at home, many of us embraced the great outdoors. Spending time in the garden though brings...

5 Ways To Make Your Home More Hygge This Autumn

You may well have heard the term ‘hygge‘. If you haven’t it is a Danish concept which cannot be translated...