mortage PIGGY

Budget 2015: Help to Buy ISA

The Government has announced they will be launching a Help to Buy ISA to help first-time buyers save for a deposit.

After his Budget speech yesterday, Chancellor George Osborne  has announced a new product to help first time buyers save up for a deposit. For every £200 saved, the Government will top it up with an additional £50 which equals as a 25 per cent tax-free bonus. The bonus will be calculated and paid when the borrower buys their first home.

This bonus is available on homes valued up to £250,000 (£450,000 in London).

There is a maximum initial deposit of £1,000 and the maximum monthly deposit is set at £200. The Government will contribute a maximum of £3,000 on £12,000 of savings.

Savers can only save into one cash ISA per year. This means it will not be possible for a saver to subscribe to a Help to Buy ISA and another cash ISA with another provider.

Osborne said: “It is as simple as this: we will work hand in hand to help you buy your first home. This is a Budget that works for you.”

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