The banks and building societies that are set to offer the Government’s new Help to Buy ISA (Individual Savings Account) have been named.
The Help to Buy ISA was announced by George Osborne later this year and is designed to help first-time buyers save enough money for a house deposit. Figures show that the average purchase price paid by a first time buyer is £211,000, with an average deposit of 19% needed.
How will the Help to Buy ISA work?
First time buyers who take out a Help to Buy ISA will benefit from tax-free interest on their savings, plus a top up from the Government.
The Help to Buy ISAs will be launched from 1st December and will be available to first timers buyer a home worth up to £250,000; £450,000 in London.
Savers can pay up to £200 per month into a Help to Buy ISA, with the Government adding up to £50; the maximum which can be held is £12,000 with the Government top up limited to £3,000.
Which lenders will be offering Help to Buy ISAs?
So far the following lenders have said they will sign up and offer Help to Buy ISAs:
- Virgin Money
Whilst the terms offered by each of the banks and building societies will be announced closer to the time, it is to be hoped that further banks and building societies enter the market to improve choice and introduce more competition.
We’re here to help
If you or your children would like more information on Help to Buy ISAs we’re here to help.
Call Sarah or Bev today on 0115 933 8433 or email email@example.com