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We know that one of the biggest barriers to home ownership in London is the monumental deposit that you need to buy a house; coupled with high rents, and living expenses, owning your own home may seem a bit of a pipe dream.
However, there are many schemes out there to help, but one of the most popular ones, the Help To Buy ISA, is about to end. So what is it, and is it worth investing?
The Help to Buy ISA is a special type of bank account where the state adds up to 25% extra on top to enable you to buy a house. The added benefit is a higher interest rate than most savings accounts.
The maximum you can save each month is £200, but in the first month you can deposit £1200. You can open the account with any amount, but it is worth maximising the first month. The maximum the government will add in is £3000, and you need to ensure that you have saved a minimum of £1600 yourself to benefit from the bonus.
The Help To Buy ISA is only available to first time buyers purchasing properties located in the UK with a purchase price of up to £250,000 (£450,000 in London). It must be the only home that you own, where you intend on living, and be purchased with a residential mortgage. The definition of first time buyer is strict- you must never have owned, or owned an interest in a residential property in or outside the UK, whether bought or inherited. The ISA is an individual product, so if you and your partner are both first time buyers, you can take out individual ISA’s and benefit from the contribution separately. Additionally, if your partner has owned a property before, but you are a first time buyer, you can still open one and use it to contribute to the deposit.
It may not be unlimited free money, but it is one of the easiest, and simplest ways to save for a house; however you need to be quick as it is closing to new applicants on November 30th. Even if you feel that owning a home is in the distant future, it is worth considering opening an ISA before the deadline as you'll be able to save in it until 30 November 2029. The bonus will be added as long as you use it for a deposit by 1 December 2030.
We have many properties available to rent or buy across the city. To find out more, please visit our website www.austinhomes.co.uk or email info@austinhomes.co.uk
Miss. Claire White
W. Why Media
E. claire@whymedia.com