Help to Buy: ISAs opened every 30 seconds across UK
250,000 first time buyers have opened a Help to Buy: ISA since launch.
- this week the first people have claimed their Help to Buy: ISA bonus
- Chorley Building Society becomes 15th banking brand to sign up to offer Help to Buy: ISAs
A quarter of a million first time buyers, more than half of whom are aged 30 and under, have opened a Help to Buy: ISA since the government’s landmark scheme launched on 1 December 2015. This is equivalent to 1 person opening an account every 30 seconds, or over 3,000 a day.
The first homebuyers have also claimed their Help to Buy government bonus this week, which means the new Help to Buy: ISA is already helping first time buyers onto the housing ladder.
The Chancellor made these announcements while visiting a Persimmon housing development in Sandbach, Cheshire, which provides new-build homes that are available through the government’s Help to Buy scheme. Over 25,000 people have taken out a Help to Buy: ISA in the North West of England.
Chancellor of the Exchequer, George Osborne said:
It’s great to visit a Persimmon housing development in Cheshire to see first-hand how the government’s landmark Help to Buy schemes have helped over 13,000 people in the North West achieve their dream of home ownership.
Last year I announced further help for first time buyers with the new Help to Buy: ISA and I’m delighted that a quarter of a million people have already taken advantage. It is all part of our plan to back working people who are doing the right thing and saving for their first home.
Chorley Building Society will also offer the new Help to Buy: ISA from 8 February, which means that 15 different bank brands have now signed up to offer the product.
Launched by the Chancellor at the 2015 March Budget, the Help to Buy: ISA is part of the government’s long term plan to support people who want to work hard, save up for a deposit and buy their own home.
The scheme gives first time buyers the opportunity 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 buying together will be able to combine their bonuses, meaning a potential boost of up to £6,000 towards a deposit for a first home.
The government is determined to help first-time buyers achieve their dream of owning their own home, which is why it introduced the successful Help to Buy: Mortgage Guarantee and Help to Buy: Equity Loan schemes, which have helped over 100,000 people onto the housing ladder.
Today’s visit comes the same week as the launch of the new London Help to Buy scheme, which gives first-time buyers and second-steppers the opportunity to own a new-build home in the capital with a deposit backed by a 40% equity loan from the government that is interest free for the first 5 years.
At Spending Review 2015, the Help to Buy: Equity Loan scheme was extended to 2021.
Data provided by a sample of the banks offering Help to Buy: ISAs shows that 75% of the savers who have opened the ISAs are aged 30 and under.