Help to Buy ISA is Launched

Having been launched on December 1st 2015, first-time buyers are now able to apply for a Help to Buy ISA: the government subsidised savings scheme to support those trying to get onto the property ladder.

The much-anticipated scheme will see savers benefiting from a 25% bonus on deposits of up to £200 per month. This is all part of Chancellor George Osborne’s measures to turn “Generation Rent” into “Generation Buy”.

Several lenders have announced their initial interest rates, with Virgin Money, Barclays, Nationwide, NatWest, Aldermore and Santander all offering between 2% and 3%, including preferential rates for existing customers. But competition between lenders is heating up, with Halifax currently leading the way in the market with a variable rate of 4%.

Not only do many of these rates sit above the average for non-Help to Buy ISAs, there are also several other account options, with some lenders offering upselling deals and cashback as part of their offering. It is a great idea for first-time buyers wanting to save more effectively, with a couple with two Help to Buy ISAs potentially receiving a government bonus of £6000 towards their first home.

For information on the Help to Buy ISA please click here.

For more information on the Help to Buy properties available at Woodland View please call us on 01594 544271.