More companies commit to Help to Buy Isa scheme

Updated

Fourteen lending brands have now signed up to the Help to Buy Isa scheme ahead of its launch next month, the Chancellor has announced.

HSBC, Aldermore, Clydesdale Bank, and Newcastle Building Society have agreed to offer Help to Buy Isas from December 1, George Osborne said.

Barclays, Bank of Scotland, Halifax, Lloyds, Nationwide, NatWest, Santander, Ulster Bank, Virgin Money and Yorkshire Bank are already on the list of those who have confirmed they will take part.

From December 1, first-time buyers saving for a deposit will be able to put up to £200 a month in a dedicated Isa that the Government will top up by 25% - meaning a £50 bonus for every £200 saved.

The maximum Government bonus that someone can receive is £3,000. To receive that, they will need to have saved £12,000.

To kick-start their account, first-time buyers can also open their account with a one-off lump sum of up to £1,000 in addition to the monthly £200 maximum deposit.

Couples will also be eligible if they are buying together, meaning a potential boost of up to £6,000 towards a deposit for a first home.

To qualify for a Help to Buy Isa, someone must be a UK resident aged 16 or over buying their first property.

The property must be in the UK, and cost up to £250,000, or up to £450,000 for people buying in London. It must not be bought as a buy-to-let property.

The Help to Buy Isa can be used with other Help to Buy Government schemes aimed at helping people onto the property ladder.

Simon Healy, managing director of savings at Aldermore, said: "First-time buyers play a vital role in the UK housing market and our own research shows there is a real appetite for the new Help to Buy Isa."

Steve Fletcher, director retail banking for Clydesdale and Yorkshire Banks, said: "This latest addition to our product offering will be on sale online, in branch and over the phone from 1 December to ensure customers get the most out of the scheme from the first day it becomes available."

Mr Osborne said: "It is great news that four more firms have joined the scheme - improving competition and giving consumers more choice when saving for a new home.

"And it is important that when people come to buy a house they are able to make an informed choice so they get the mortgage that is right for them. The CML and Which? work is an important step forward and will make it easier for borrowers to choose the best deal."

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