NEXT week (December 1) the government will launch a brand new savings scheme to help first time buyers build a deposit to buy their first home.
The savings plan, called a Help to Buy ISA, means that first time buyers can expect government to boost their savings by 25% to help them get a foot on the housing ladder. That means that for every £4 aspiring homebuyers in Andover are able to save each month, the government will give them £1 to help them get onto the property ladder.
Local homebuilder Barratt Homes is welcoming the Help to Buy ISA which will help more first time buyers in the area achieve their dream of homeownership.
Sales director Lynnette St Quintin said: “The new Help to Buy ISA saving scheme, which launches on 1 December, helps first time buyers save up a deposit with the government giving them additional top-up sums. It’s another exciting opportunity to help more people get on to the housing ladder.”
The Help to Buy ISA is available from the start of December with the government adding up to £50 a month on £200 of savings up to maximum amount of £3,000 on savings of £12,000. A couple saving for a house together can between them benefit from £6,000 from the government if they save £24,000 themselves. The savings account is backed by many high street lenders including Barclays, Lloyds Banking Group, Nationwide, NatWest, Santander and Virgin Money.
Lynnette continues: “Under the current Help to Buy scheme first time buyers who are saving for their first home may only need to save a five per cent deposit. This means that first time buyers in Andover who wish to buy a brand new home worth around £250,000 may only need a deposit of £12,500. The new Help to Buy ISA means that if buyers save £9,500 themselves towards that deposit the government could help them with the other £3,000.”
The original Help to Buy scheme allows homebuyers to buy a brand new home up to the value of £600,000 with a five per cent deposit, thanks to a 20 per cent loan from the government. Homebuyers can then gain access to more affordable lending rates available with a 75 per cent loan to value mortgage. The equity loan is interest free for five years and can be paid back when the property is sold, allowing homebuyers to benefit from any potential uplift in house prices. The Help to Buy ISA can be used in conjunction with properties worth up to £250,000 outside London.
At Locksbridge Park in Andover Barratt currently has a range of three bedroom homes with prices starting at £249,995.
For further details about Help to Buy and purchasing a brand new Barratt Home with a five per cent deposit, visit www.barratthomes.co.uk. Details about the Help to Buy ISA can be found at www.helptobuy.gov.uk