The Best Affordable Housing Solutions From...
Across the globe there is an immediate desire for affordable housing solutions. A survey taken by the Lincoln Institute revealed that of 200...
Here at Iceni homes, creating affordable homes for all across the UK is our ultimate goal. However, there is no denying that for individuals trying to get on to the property ladder for the first time, it has never been more difficult. There are so many factors preventing first time buyers from getting on to the property ladder and very few schemes in place to combat them.
However, there is one system that is giving first-time buyers a glimmer of hope: a Help to Buy ISA.
This is a government scheme designed to help people save for a mortgage deposit in order to buy their own home. A key factor required to qualify for the Help to Buy ISA is that the individual must be classified as a first time buyer and not own a property anywhere else in the world.
There are various different ISA offers across different banks and building societies, however your savings across all of them are tax free and all savers get a bonus contribution from the government towards their first mortgage deposit.
Despite all of the percentage signs that are involved with Help to Buy ISAs, they are relatively simple. Each ISA differs slightly in terms of finances, however, broadly speaking these are the types of numbers and percentages that are involved with Help to Buy ISAs.
The government will top up any contributions you make by 25%, up to the contribution limit of £12,000. So, for every £200 you save, the government will contribute £50. This means you can earn a maximum of £3,000 from the government.
The minimum amount you need to save to qualify for a government bonus is £1,600 (which gives you a £400 bonus). You can start off your ISA with an initial deposit of up to £1,000 which also qualifies for the 25% boost from the government.
Help to Buy ISAs are available to each first-time buyer, not each home. So, if you’re buying a property with your partner, for example, you’ll be able to get up to £6,000 towards your deposit. You can claim the government grant as soon as you hit the minimum requirement of £1,600.
What do you need to qualify for the Help to Buy ISA? You need to be a first time buyer and not own a property anywhere else in the world. As well as this, you have to be over the age of 16 and the ISA can only be used to buy a home worth under £250,000, or £450,000 if it is situated in London.
Unfortunately, there are some limitations as to what you can do with the ISA. You are unable to use the ISA if you plan on simply renting the property and you cannot use it on overseas property.
Here at Iceni we firmly believe that affordable, quality homes should be available for everyone. If you think that a Help to Buy ISA is the right move for you, then make sure you apply as soon as possible with a bank or building society of your choice as the scheme comes to an end on 30 November 2019.
Take a look at some of the wonderful homes we have produced that could be yours with the help of your very own ISA!
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