What can you get for your money with the Help to Buy ISA?
With monthly mortgage payments now being lower than rental costs in every region of Great Britain as recently stated in the Telegraph, and the highly publicised Help To Buy ISA coming into play, it’s becoming more attractive than ever to invest your money and make your first move onto the property ladder. But what does the ISA actually entitle you to and what can you expect to get for your money?
What are the perks?
The government backed ISA entitles you to receive a 25% boost on top of your own savings, with the only condition being the money must go towards a house deposit. You can put in a maximum of £12,000 over 4 years, meaning you could earn £3000 in contributions from the Government. What’s more, couples can combine their funds, so you could benefit from an extra £6,000 towards your home.
So what type of home can I use this on?
The ISA can be used on properties up to £250,000 outside of London, yet the top end still remains somewhat out of reach, where a typical 10% deposit would mean forking out a lump sum of £25,000. However, in Nottingham, where the average house price is £91,446 according to House Price Index, you could be getting a lot more than you expect for your money.
On our website at the moment, 2-3 bedroom properties in some of the most sought after areas, including the City Centre, Mapperley Park and West Bridgford, are being marketed for under £250,000, starting at just £80,000 for a one bedroom apartment in the City Centre. Apartments in Drapers Bridge, one of the newest residential developments in the city, start at just half of that top-end £250,000 price tag.
How do I sign up?
It is available at numerous banks and building societies and you can open the account with as little as £1 to £1000. Thereafter you can put in £200 per month — so it’s best to open the account with as much as possible to get the maximum contribution. The money will be redeemed by a solicitor or conveyancer when you buy the house.
Oliver Marshall comments:
“The Help to Buy ISA will give an extra £50 for every £200 you save up to a bonus of £3,000 so if you save £12,000 the government will boost it to £15,000 which is a real help for first time buyers! So far in 2016 already we have seen lots of activity in Nottingham from both owner occupiers and investors and we are confident this will continue. Nottingham is an excellent location for first time buyers; the city centre has lots to offer and is continuously improving, it is well situated with good transport links/facilities and it is home to several big sports teams!”
With the lump deposit sum becoming more and more accessible to the masses whilst also having the prospect of lower outgoing monthly payments, there’s never been a better time start planning ahead.
For more information, please contact Oliver Marshall on firstname.lastname@example.org or 0115 941 5939