Many of our customers have benefitted from a little government help to get onto the property ladder. With only a 5% deposit requirement it’s an attractive helping hand. I’m sure a lot of you have heard about Help to Buy, but some of you may not know about the ISA the government is now offering to help you save for your future.
How does it work?
For every pound you save, the government will boost your savings by 25% up to a maximum government bonus of £3,000. This can rise to £6,000 if you are buying with a partner as the bonus is available to individuals and not households. If that doesn’t encourage you to save to buy a new home, we’re not sure what will!
Anything else you need to know?
The minimum bonus is £400 so that means you’d have to have saved £1,600 into your ISA before you can benefit from the bonus. To apply you will have to inform your solicitor so that they can apply for you when buying your home.
Rates have come down since the ISA scheme launched: the bank rate you will earn on your money will be slightly less than it was. Why? This is because the Bank of England has slashed interest rates, however the government bonus has remaining unchanged so there are still benefits from saving.
Who offers the ISA?
Banks include Halifax, Nationwide, Natwest and Santander.
For further details see here.