Help to Buy ISA announced in 2015 Budget News
The chancellor, George Osborne has announced the introduction of a Help to Buy ISA, due to be launched in the Autumn.
The Help-to-Buy ISA will see first time buyers given a boost by the Government increasing their savings by 25%.
The Chancellor revealed that for every £200 people save for a deposit the government will top up by £50.
Once savers are ready to buy a home they will withdraw their savings and receive a government bonus of 25% of the total account balance. The government bonus will be capped at a total of £3,000.
The Government bonus can only be put towards a first home located in the UK with a purchase value up to £450,000 in London and up to £250,000 in all other parts of the UK.
Accounts will be available through banks and building societies from Autumn 2015 and will be available for 4 years, but once they are open there’s no limit on how you long you can save for.
First time buyers can make an initial deposit of £1,000 when the account is opened in addition to normal monthly savings.
Accounts are limited to one per person rather than one per home, so those buying together can both receive a bonus.
It is anticipated that up to 1.2 million people will take advantage of a government bonus from the scheme