Help to Buy ISA
Contractors have just had some great news from Chancellor Osborne in his 2015 Budget. He has created a Help to Buy ISA for first time buyers.
The Help to Buy scheme, brought in by the Government has been highly successful. It has provided the feelgood factor that the Government wanted going into the General Election in May.
Previously, lenders were asking for 20% and 25% deposits to first time buyers and they just didn’t have it. First time buyers are crucial for a healthy housing market. Their inability to get into the market was depressing prices.
So, the Government guaranteed 20% of the deposit. This meant that those first time buyers were able to get 95% mortgage again. They did so in droves.
This helped to push house prices up which engendered the Government’s feelgood factor. This, in turn, has brought the Conservatives level with Labour in the polls.
New Help to Buy ISA
Now, the Government has gone further and created the Help to Buy ISA.
It enables first time buyers to be able to save tax-free for a mortgage deposit in an ISA. Not only that, for every £200 a first time buyer saves the Government will add a further £50.
That should help!
Furthermore, it means you are able to increase your deposit by 25%.
It’s a huge boost to first time buyers, including contractors taking out contractor mortgages.
Help to Buy ISA in the Autumn
Said Emilie Heaney, an expert on both the contractor mortgages market and the ISA for contractors market:-
“Contracting first time buyers will be able to start saving in these special ISAs in Autumn 2015. You will need an initial deposit of £1000 to open a H2B ISA and can use it to save for homes worth up to £450,000 in London and £250,000 in the rest of the UK.
“So, your £1000 you will benefit from a £250 uplift from the Government.
“Overall this will be further positive news for the housing market starved of first time buyers with enough of a deposit to take that all important first step and should encourage a generation of new savers and we commend this to the house”.
To get in the queue for one of these new Help to Buy ISA products fill in the form here ISA Form