As I am in the class of first time buyers and will be for a while, Osborne’s final 2015 budget before May’s general election gave a bit of hope to people like me. As much as we weren't all waiting for Mr Osborne to be the hero and bail out first timers, it definitely helps in seeing a glimpse of light at the end of the tunnel.
|Help to buy ISA|
In My Opinion here are 5 Ways the Scheme Helps First Time Buyers
- Every little bonus saving helps: For every £200 a first time buyer saves the government tops it up with £50 monthly (Savers can earn as much as £3,000 which is the limit government pays in). For savers waiting to raise their last £3K, there's the helping hand you need.
- The more the merrier: The ISA bonus applies to one saver at a time. If you were saving for your first home with your significant other, sibling, friend etc. You get twice as much bonus as long as you have different savings account.
- Anything is possible: The bonus applies to homes worth up to £450,000 in London and £250,000 outside, this sounds a bit unfair to people wanting to buy a house over 250K outside London and not exactly encouraging people to move out of London but London first time buyers can still get some much needed boost especially with continuous house price rising. First timers can now expand the cost of their potential buys a bit more.
- Almost good to go: The scheme will be available from this autumn so first timers the sooner you start stuffing your piggy banks the better.
- Never too late: According to the council of mortgage lenders the average age of a first time buyer is around 36 and a first timer in London needs an average deposit of £70,000 while the one outside needs about £30,000. With this scheme first timers looking to make a joint purchase can get a bit of a boost up the ladder and don't have to retire before getting a chance to save up for their first home.
I know this is a world apart from getting the significant assistance with raising an enormous deposit but if the ISA scheme is used along with the 5-10% help to buy deposit scheme it sure would make a difference.
Looking forward to the day I get my keys. Happy saving first timers!!!!