The deadline is looming to apply for the Help to By ISA. Money Saving Expert Martin Lewis has been urging Britons to open a Help to Buy ISA. He told ITV viewers: “It's the simplest, easiest form of help for first time buyers. You save money in there and then the state adds a 25 percent boost.
"So for every £1,000 you put in, you get 25 percent - £250 on top. It's an absolute no brainer - however, it closes to new applicants on November 30. There is now less than a month and then it’s gone.”
Leading estate agent comparison site, GetAgent.co.uk, has looked into what you could have bought if you took advantage of the account when it opened.
GetAgent.co.uk looked at the current deposit saved for those that took advantage of the ISA when it first launched and where across the UK you can buy using this as both a five per cent and 10 per cent mortgage deposit based on the current first-time buyer house price.What is a Help to Buy ISA?
Launched in December 2015, the ISA allows an initial maximum start-up cost of £1,200 and boosts any further deposits by 25 per cent capped at £200 a month, with the Government paying in £50 for every £200 deposited.
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Help to Buy ISA: You can buy property for sale worth over £250k (Image: GETTY/EXPRESS.CO.UK)
Help to Buy ISA: Money Saving Expert Martin Lewis has been urgently encouraging Britons to open one (Image: EXPRESS.CO.UK)
This bonus is capped at £3,000 meaning you would have to tuck away £12,000 to make the most of it.
To qualify, you need to be a first-time buyer and purchase a house with a value no more than £250,000 or £450,000 in London.
If you opened a H2B ISA when it was launched back in December 2015, you would currently have a savings pot of £10,600, with the Government pitching in a further £2,650, a total of £13,250 over the last 47 months.
Should you hold out for a further seven months to reach the maximum amount allowed, you would have a saving pot of £12,000 and a further £3,000 from the Government – a total of £15,000 for a deposit.
But back to today. With a cash pot of £13,250 and based on using this sum as a 5 per cent deposit on a mortgage (one of the most common for first-time buyers), your Help to Buy ISA could bag you a house in 71.5 per cent of UK towns.