More than half a million people open Help to Buy ISAs

More than half a million people in the UK have opened Help to Buy ISAs within a period of only six months, according to the latest government figures.

The saving-friendly ISAs became available in December 2015 and are very attractive to first time buyers because the government has agreed to add a 25% bonus to boost a person’s savings as long as the money is used to buy a home. The new incentive is part of the government’s Help to Buy scheme, which offer a number of ways to buy a home with government assistance and help you to provide a substantial deposit for your future property. All major mortgage lenders are involved with the scheme which means you also have easy access to mortgages from a variety of lenders.

Help to Buy ISAs key figures:

• The maximum bonus available is up to £3,000, when your Help to Buy ISA savings reach £12,000.
• The accounts are available to each first time buyer, not each household. This means that if you are planning to buy with your partner, for example, you could receive a government bonus of up to £6,000 towards your first home
• Over 160,000 completions under the schemes have already taken place
• Average house price being purchased with support from the Help to Buy schemes is £189,795, significantly below the national average
• 94% of Help to Buy completions have taken place outside London
• Over half of Help to Buy completions have been for new build homes.

Former Chancellor of the Exchequer, George Osborne said: “It’s hugely encouraging that over 500,000 people have already opened Help to Buy ISAs. The government’s Help to Buy schemes offer responsible lending, and the vast majority of those who are benefiting are first time buyers.”

Machins Solicitors LLP has considerable experience in dealing with Help to Buy agencies across the nation and has acted for a number of first time buyers under the Help to Buy scheme.

This article was written for general information and is not to be relied on without obtaining specific legal advice. For further information, please contact either Dipak Odedra on 01442 872311 in our Berkhamsted office or Shyam Patel on 01582 514396 in our Luton office if you would like advice about the legal aspects of buying and selling a home.

This article first appeared in the Hemel Gazette Business Eye in August 2016.