Client Blog: Be Cautious When Considering Help To Buy Your First Home
The government launched its flagship home ownership scheme in 2013. The “Help to Buy” schemes include Help to Buy Shared Ownership and Help to Buy Equity Loan s to help hard-working people take steps to buy their own house. The Help to Buy ISA pays first-time buyers a government bonus. For example, if a first time buyer saves £200 a month, then the government will add £50, up to a maximum of £3,000, boosting the ISA savings of £12,000 to £15,000. Since the scheme’s launch, £8.27 billion has been lent in Help to Buy loans and over 150,000 properties have been bought. Help-to-buy can be a good option if a person is keen to buy a new-build property from one of the house builders registered with the HCA (Homes and Communities Agency). In order to complete the purchase, the government will provide a 20% equity loan (40% in London). Unlike the government bonuses paid into Help to Buy and Lifetime ISAs (which can be used to save up a deposit for ...