Yesterday the UK Chancellor George Osbourne, announced his government’s budget for the upcoming tax year for 2015 / 2016. What’s in it for first time property buyers in the UK?
The Budget 2015 and the first time buyer property market
The UK government has pledged to help first time buyers looking to get their first property and enter into the property market. They will launch The Help To Buy ISA scheme that will help first time buyers tackle low interest rates on savings and high deposits required by lenders when buying a property. The Chancellor has pledged ..
The Help To Buy ISA – How it works and the small print
For every £200 a first time buyer saves, the UK government will provide a £50 bonus up to a maximum bonus of £3,000 on £12,000 of savings. The bonus will be applied to each person who has saved into the ISA at the point they use their savings to purchase their first home. Accounts are limited to one per person rather than one per home so those buying together can both receive a bonus.
The tax-free government bonus will help people saving up to buy a first home worth up to £450,000 in London or £250,000 anywhere else in the UK.
The new ISA accounts can be opened for a period of four years from the start date of the scheme and applicants must be a minimum of 16-years-old to open an account.
Savers will have access to their own money and will be able to withdraw funds from their account if they need them for another purpose, but the bonus will only be made available for a first home purchase.
Take advantage of this new Help To Buy ISA for First Time Buyers
As always it’s best to speak with a financial adviser or your mortgage broker and discuss the options and lenders taking part in this scheme and how it works. With the recent stamp duty changes and now this, we think it’s a great vote winner from the Conservative party, but also a much needed boost and financial help for first time buyers to get their foot on the property ladder.