help with house puchases with Help to Buy ISARecent statistics from the HM Treasury reveal more than 62,000 property completions have been supported by the Help to Buy ISA scheme. The Help to Buy ISA was launched in December 2015 with initial only a few institutions supporting it. Now the number of banks, building societies and credit unions supporting this initiative is slowly increasing

New homeowners have received £54 million from the Government’s Help to Buy ISA scheme.

So far over 86,000 bonuses have been paid out by the government, totalling £54 million. This works out as an average bonus payment of £627.90.

The figures reveal that the mean value of the property purchased through the scheme was £170,000 compared to an average first-time buyer house price of £182,000. The January data from HM Land Registry shows an annual price increase of 6.2% which takes the average property value in the United Kingdom to £218,255.

The figures also reveal that the first time buyers through the scheme tend to be younger than the average first-time buyer. The median age is 27 compared to a national first-time buyer median age of 30.

What is a Help to Buy ISA

Help to Buy ISAs are a type of Individual Savings Account (ISA) designed to help first-time buyers save up a deposit for their home. The government will add 25% to your savings, up to a maximum of £3,000 on savings of £12,000. The minimum amount you need to save to qualify is £1,600 (which gives you a £400 bonus).

Other key points-

  • With a new Help to Buy ISA, the government will top up your savings by 25%. So for every £200 you save, the government will contribute £50.
  • You can start off your ISA with an initial deposit of up to £1,000, which also qualifies for the 25% boost from the government.
  • Help to Buy ISAs are available to each first-time buyer, not each house. So if you’re buying a property with your partner, for example, you’ll be able to get up to £6,000 towards your deposit.
  • Your bonus will go straight to the mortgage lender. It doesn’t sit in your account, it earns no interest and you only get it if you buy a home.

Peter Anstee from Anstee & Co said-

“Any support to help first time buyer is welcome. We are disappoint by the number of financial institution that have offered this type of ISA. I hope that we will see more new entrants coming into the market shorty. It may be worth looking also at transferring your Help to Buy ISA to a Lifetime ISA. This may makes sense unless you are looking to buy over the next twelve months as the Lifetime ISA’s have higher contribution limits.”

How Anstee & Co can help you.

If you are a first-time buyer and wish to look at your options. Then please contact our mortgage team of experts. A meeting can be arranged at times and locations that are convenient for you. We do not charge for the first meeting. We have offices in Kettering, Stamford and London. Anstee & Co make use of meeting rooms in Northampton, Towcester Bedford and Warwick. So contact us today to see how we can help.