With just a year to go, and with the deadline for the last application for the Help to Buy ISA fast approaching, Nationwide Building Society is calling on the government to extend access to the savings scheme as a vital support for first-time buyers.
The Help to Buy ISA was launched in December 2015 and was designed to help first-time buyers who open an account before November 30, 2019, to save for a house deposit and secure a home of their own. Since its launch, more than 196,000 savers have been supported in building their deposit by taking out a Help to Buy ISA, claiming an average of £800 in government contributions, in addition to their Help to Buy ISA savings pot, when they come to buy a home.
Each saver in the scheme can benefit from a government Help to Buy bonus of up to £3,000. Savers can deposit up to £1,200 in the month they open the account and a further maximum £200 in each subsequent month. For every £200 maintained in a Help to Buy ISA account, £50 will be paid by the government as a bonus at the time of purchasing a first home. The minimum Help to Buy deposit bonus is £400 and the maximum £3,000. Savers can also earn a competitive rate of interest on their money as the society’s Help to Buy ISA pays a highly competitive 2.5 per cent AER.