We are currently experiencing technical difficulties with our telephone system.
We apologise for any inconvenience and are working to resolve this as soon as possible.
Secured Loans > Chancellor helps first time buyers with new ISA

Chancellor helps first time buyers with new ISA

23rd March 2015 | Published by Christopher Scott

In his recent budget, Chancellor George Osborne unveiled a new ISA to help first time buyers, to be launched later this year.

Under the scheme, couples wishing to buy their first home will receive up to £6,000 which they can use as a deposit. They will have to save themselves in the new help to buy ISA and receive a boost to their funds from the government when they decide to buy. The boost or bonus they receive will be 25 per cent of what they have saved, up to £3,000 per individual. Thus, for every £1,000 saved, the government will add £250. The maximum amount that can be placed in the ISA is £12,000 and the bonuses are paid per Isa, rather than per property. In this way, a couple with two help to buy Isas can receive as much as £6,000. The ISAs will also pay interest.

Anyone over the age of 16 who has never owned a house before is eligible to save under the scheme. Savers must use the money from their ISAs for a home for themselves; they cannot use them for a buy to let property, even if they have not owned a property before. The value of properties that can be bought is capped at £250,000 outside London and at £450,000 in the capital.

Individuals can save up to £200 a month and so will need to save for five years if they wish to receive the maximum amount available from the government. Savers can open their account with a lump sum of £1,000, in which case it will take them four and a half years to save the maximum of £12,000.

Critics of the scheme warn that it will increase demand for homes but will not increase supply and that the £2 billion cost to the taxpayer should, instead, be spent on providing affordable housing.

Category: Money
This post was written by Christopher Scott
Warning: Late payment can cause you serious money problems. For help, go to moneyhelper.org.uk
Representative 28.96% APRC (Variable) - For a typical loan of £20,950 over 85 months with a variable interest rate of 23.00% per annum, your monthly repayments would be £537.44. Including a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00, the total amount repayable is £45,682.15. Annual Interest Rates ranging from 11.7% to 46.5% (variable). Maximum 50.00% APRC. The loan must be paid back by your 70th birthday. Read more.

Think carefully before securing debts against your home your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured against it. If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
© 2024 Evolution Money | Cookies | Terms & Conditions | Fair Processing Notice
Start Here
Please wait

Please wait

Don't leave just yet!

Evolution Money are a multi Award Winning UK finance company with thousands of happy customers!

Award Winning

Our friendly loan advisors can let you know if you're eligible for a loan without affecting your credit score. Why not give us a call today!

Freephone 0800 144 8188

Back to Evolution