New Help to Buy ISA Launched in Budget Today
In today’s budget Chancellor George Osbourne announced that a new ISA is to be introduced to help first-time buyers saving for a deposit to buy a property.
The Help to Buy ISA gives people the chance to save towards buying their first home with support from the government. For every £200 saved, the government will add a £50 top up, starting in Autumn 2015.
You can open your Help to Buy ISA at any time within the next four years, however once opened, you can save for as long as you want to. (A single Help to Buy ISA is available per home.)
You can save up to £200 each month within a Help to Buy ISA –with an optional deposit of £1,000 when you open the account. This ISA is available to individuals over the age of 16.
The scheme recognises that property prices are higher in London compared with the rest of the UK. The Help to Buy ISA with its associated bonus is available on home purchases of up to £450,000 on London, (£250,000 outside London).
“This is fantastic news for first-time buyers” says Jason Dyer of JTM Homes. “The maximum bonus of £3,000 will make a positive difference to the properties that people can afford.”
The bonus will be paid when a person buys their first home – the minimum bonus will be £400 per person.
There was more good news for savers…
  • The first £500 - £1,000 of interest earned on savings will be free from tax within a planned ‘personal savings allowance’.
  • Personal tax free allowance will rise to £10,800 next year and £11,000 the year after
 If you are thinking of buying your first home and would like to discuss your options, talk to the friendly team at JTM Homes. We’ll offer some straight-forward advice as well as some great properties to view.