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More help for first time buyers announced in budget

New measures announced in the budget will help  first-time buyers who save in a help-to-buy Isa to  have their savings boosted with a payment from the government when they decide to buy a property. The bonus will be equal to 25% of their savings, so for every £200 they save, the government will give them £50.

Once savers are ready to buy a home they will withdraw their savings and receive a government bonus of 25 per cent of the total account balance,the bonus is being offered for each person, not each house, so a couple will be able to get up to £6,000 towards their purchase.

The Government bonus can only be put towards a first home located in the UK with a purchase value up to £450,000 in London and up to £250,000 in all other parts of the UK.

It is anticipated that up to 1.2 million people will take advantage of a government bonus from the scheme.The median price of a first time buyer property in the UK is £148,190 with a median deposit of £25,190.

Since the launch of the Help to Buy: mortgage guarantee, 40,079 mortgages have been completed with the support of the scheme.

Allen Walkey

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

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