The Council of Mortgage Lenders has welcomed the announced made by Chancellor George Osborne in his budget speech today about the launch of a Help to Buy: ISA scheme.
The new scheme, expected to launch this autumn, will give first-time buyers the chance to put money in a special savings account and receive a 25 per cent government boost on the saved amount when they buy their first home.
Commenting on the Help to Buy: ISA scheme CML director general Paul Smee said:
“Those who can save for a deposit will appreciate the boost announced in today’s Budget. Such steps are welcome. But as saving for a deposit will never become easy, we still need a clear focus on the supply of new housing that will help deliver a sustainable, affordable housing market over the long term.”
The CML is looking forward to working with Government on the details of the scheme.
According to CML data, the average deposit for first-time buyers in the UK stood at £25,200 in 2014. The lowest deposits were paid in Northern Ireland with first-time buyers having to come up with £14,600 and the highest amounts were paid by residents of Greater London who had to give their lender £69,600 on average for a deposit.
Under the new scheme, first-time buyers with savings of £12,000 in their Help to Buy ISA will received the maximum government boost of £3,000 and thus has £15,000 for a deposit on their first home.
Read more details about the new addition to the Help to Buy scheme in our story, giving the details about rules and requirements for opening and saving into a Help to Buy ISA.
Full details about the new scheme are available online in the HM Treasury’s outline of the scheme.
