The Help to Buy ISA has officially launched. The tax-free savings account is available to people saving for a deposit on their first home.
First-time buyers can save £200 each month, up to a maximum of £12,000, and the government will provide a 25 per cent bonus on the interest and contributions, up to a maximum of £3,000, when the saver purchases a property.
Dave Bexon, Group sales and marketing director for Redrow Homes, said:
“We welcome today’s launch of the Help to Buy ISA.
“Raising a deposit is regularly cited as one of the biggest barriers to home ownership for young people. This pioneering scheme should encourage a generation of renters to save for a down payment on a home, with the knowledge that the hard-earned money they set aside will be topped up with a contribution from the Government.
“We’re confident this assistance will encourage more would-be homeowners into the market which, longer term, is also key to helping to stimulate movement at all levels of the market.
“Meanwhile, Help to Buy equity loans continue to provide a valuable boost to purchasers of new build homes, enabling people to buy with just a 5 per cent deposit thanks to an equity loan of 20 per cent from the Government, which is interest free for five years.”
Mortgage advisor Andrew Mannion, of RSC New Homes, one of several mortgage experts who offer advice to Redrow purchasers, also welcomed the introduction, adding:
“We feel that this scheme will be useful as it will boost a customer’s deposit which, in turn, will enable them to access more affordable and competitive interest rates.”