Unless you manage to save a substantial amount, you’ll find it very difficult to secure a mortgage for your first home.
But now the government has launched a new scheme specifically to help first time buyers. When you save with a Help to Buy: ISA, your money will be topped up by 25 per cent.
For example: if you save £200 per month, each time the government will add £50. The maximum bonus you can can receive is £3,000.
However – if you’re buying a home with a partner or friend, you could potentially get up to £6,000 in bonuses as the accounts are available per person not household.
The amount you save is up to you, but the maximum is £200 per month and to receive the £3,000 you need to have deposited £12,000.
And the minimum the government will pay out is £400, so before you can claim a bonus you must have saved £1,600.
You don’t have to worry about blowing your government money, either. When you’re buying your home, the solicitor will apply for your bonus and it will be added to the total you’re putting towards the property.
To open a Help to Buy: ISA you must:
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Be 16 or over
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Be a first time buyer, and not own a property anywhere in the world
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Be a UK resident
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Have a valid National Insurance Number
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The Help to Buy should also be the only active ISA you’ve opened in the same tax year
To qualify for the bonus, the property must:
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Be in the UK
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Cost up to £250,000, or up to £450,000 if it’s in London
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Be bought with a mortgage
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Not be your second home, or a buy-to-let property
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Not be rented out
Providers in the Help to Buy: ISA scheme include:
**Barclays **
**Halifax **
HSBC
Lloyds
NatWest
**Santander **
Virgin Money
For more information and further providers, click here.