27th July 2015
Banks and building societies including Barclays, Lloyds Banking Group, Nationwide, NatWest, Santander and Virgin Money have all signed up to offer the new Help to Buy ISA from 1 December 2015, the Chancellor George Osborne has confirmed.
Launched by the Osborne at the March Budget, the Help to Buy ISA is part of the government’s long-term plan to support people who want to buy their own home.
Starting on 1 December, first time buyers saving for a deposit will be able to save up to £200 a month in a dedicated ISA that the government will top up by 25%, up to a maximum of £3,000.
First-time buyers eager to make the most of the scheme can also open their account with a one-off lump sum of up to £1,000 in addition to the monthly maximum.
And couples will be eligible if they are buying together, meaning a potential boost of up to £6,000 towards a deposit for a first home.
Chancellor George Osborne said: “This government is determined to help working people, and encouraging the aspiration to home ownership is central to that. That is why I’m delighted that so many British banks and building societies have already signed up to offer the Help to Buy: ISA from December, which will reward thousands of people who are working hard to save for their first home by giving them a 25% boost to their deposit savings.”
Steven Cooper, CEO, personal banking at Barclays, said: “We are fully supportive of the government’s new initiative which will help even more people to secure their first mortgage and home. We look forward to launching our Help to Buy: ISA later this year, helping future home-owners to achieve their ambitions.
Chris Rhodes, Nationwide executive director for group retail, added: “As one of the UK’s largest mortgage and savings providers, we feel it is important to be involved in the Help to Buy: ISA scheme from day one. Over the last four years we have demonstrated our commitment to first time buyers by lending more than £1bn through our low deposit Save to Buy mortgages. Our involvement in the Help to Buy: ISA scheme will strengthen that support. Nationwide customers will now be able to benefit from the government Help to Buy: ISA bonus in addition to our Save to Buy initiative when buying their first home.”