Free money for first time buyers
The government is offering first time buyers up to £3,000 towards their first home with the launch of the new Help to Buy ISA.
For every £200 saved in one of these special accounts, the government will give a £50 bonus. This is up to a maximum of £3,000 on £12,000 savings, which would give a total spend of £15,000. The minimum is a £400 boost to a £1,600 saving, giving a total of £2,000.
Purchasers saving £4,800, for example, would be in-line for a £1,200 bonus. And because the Help to Buy ISA can be used in conjunction with the Help to Buy Equity Loan scheme, this would be enough to put down a deposit on a lovely two-bedroom property at Bower Brook Gardens.
Anyone who has never owned their own home before is eligible for a Help to Buy ISA and many of the high street banks are offering this type of account.
Handily, the bonus can be doubled if two first time buyers purchase a property together, as both can have their own account. It is hoped the scheme will help those who are saving be able to make the move sooner, as they can build the cash lump sum much faster.
Gill Richardson, Russell Homes sales manager, said: “The Help to Buy ISA is a great boost for first time buyers. The potential of adding free cash to their deposit will help many get onto the property ladder much sooner than anticipated, and should give them access to even better mortgage rates. Even a modest saving will be topped up by the government, so it’s definitely worth all first time buyers setting up one of these accounts now.”
The bonus only kicks in once the first £1,600 has been saved, and can only be accessed during the process of purchasing the property when your solicitor or conveyancer applies to the government on your behalf.
More information about the Help to Buy ISA is available on the government website.
Prices at Bower Brook Gardens start from £120,000. With Help to Buy, purchasers can buy with a 5% deposit which would equate to just £6,000 at Bower Brook Gardens.
To see the homes available at Bower Brook Gardens click here.