First-time buyers set to open Help to Buy ISAs

Help to Buy ISAs are set to launch from the 1 December, aiming to help first-time buyers save a deposit for a home.

Under the government scheme, individuals over the age of 16 can save up to £200 into an account per month. Buyers can also deposit a lump sum of up to £1,000 when they set up their account.

A 25% bonus will be added to the closing balance of an account up to a maximum of £3,000. Bonus is then paid when the account is closed, as part of the conveyance process towards your first home.

According to a survey of 2,000 prospective first-time buyers by Halifax, 48% of prospective first-time buyers are expected to open a Help to Buy ISA.

More than half (52%) say the deposit they need is stopping them buying a house.

Giles Martin, head of Halifax savings said:

“It is clear from our research that while some people are still worried about the challenge of saving for a deposit, many see the new Help to Buy ISA as a genuine solution, with half of prospective first-time buyers intending to open an account.”