If you are saving to buy your first house then the Help to Buy ISA seems like a really smart scheme – you will be able to earn up to 4% interest and then the government will top up your savings by 25% on what ever you manage to save. Here is a summary of the scheme:
• As long as you are 16 years of age or over and it is your first property then you can apply for a Help to Buy ISA. The criteria of never having owned a property is quite strict: you can’t have ever owned a residential property in the UK or abroad, whether it was bought or inherited.
• In the first month you can save up to £1,200 then after that you can add another £200 a month or less.
• You will be able to access this scheme from 1 December 2015 until December 2019. You will then be able to make deposits until 2030, however it’s worth bearing in mind that a change in government might mean that they stop paying bonuses in the future.
• The minimum you must save to access the bonus is £1,600, you will get £400 based on this figure. The highest amount you can access is on £12,000 and you will be able to get £3,000 worth of bonuses. You can exceed this amount but you won’t get more than £3,000 but you will receive 4% interest on your savings.
• If you and your partner are both first time buyers you can both set up a Help to Buy ISA which will mean that you can get double the bonus.
• The bonus will be available for properties worth £250,00 or less outside of the Capital or up to £450,000 in London.
If you would like to find out more about the new Help to Buy ISA then why not pop into your local branch of Intercounty for a chat and a coffee or alternatively call our team on 0330 159801.