With rents generally increasing around the country it is becoming more difficult for prospective home owners to save that all important deposit. To help the government this year has introduced the Help to Buy ISA. This is a product aimed solely at first time buyers who will have their savings boosted by 25% by the Government up to a maximum return of £3000.
This ISA is available through most banks and building society’s but as you would expect there are some conditions to be met:
- The saver must be over the age of 16
- The value of the property cannot exceed £450k in London or £250k in the rest of the country
- This scheme cannot be used to fund a second home or buy to let investment
- The saver must save at least £1600
- The saver can only open one Help to Buy ISA
- The buyer can use any mortgage provider, not necessarily the bank who has provided the ISA
- The ISA is for an individual so if a couple are looking to buy their first home they can both open a Help to Buy ISA
- Buyers can transfer the ISA if they can get a better deal elsewhere
Obviously this is a positive step in helping people get on the property ladder and should be seriously considered but as with all these products, shop around for the best deal.