New ISA unveiled to assist first time buyers

March 30, 2015 by Brendan

House Prices

At the recently revealed Budget 2015, it was announced that the Government is set to launch a Help to Buy ISA.

With the current property prices and new tougher lending criteria applied by lenders following the Mortgage https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpget Review (MMR) in April 2014, the Government has said the savings scheme will help those looking to buy their first home.

Whilst details are still being confirmed within the industry, it is thought it will be available from Autumn 2015, and will remain available for four years. The concept of this savings account is that for every £1 a first time buyers pays into one, the government will add 25p up to a maximum of £200 per month, up to a total saved amount of £12,000. For those that save the maximum £12,000, they will end up with £15,000 as or towards a deposit.

Once a Help to Buy ISA has been opened, there is no time limit as to how long people can save for – it will depend on individual circumstances.

These will undoubtedly stir a lot of interest within the mortgage market, although critics have stated they feel it will push house prices further from a first time buyer’s reach due to the lack of properties available.

As a qualified mortgage professional who has finished their CeMAP training and passed the end exam, you will be the first point of contact for those looking to buy their first home. You will also need to ensure that people are aware that this new product is not available for buy to let purposes or to existing homeowners.