A quarter of a million Help to Buy ISAs have been opened by first-time buyers since the scheme was launched on 1 December, according to HM Treasury.
This is the equivalent of one person opening an account every 30 seconds or over 3,000 a day. The government said that half of those that have opened a Help to Buy ISA were under 30.
Chancellor George Osborne said: “Last year I announced further help for first-time buyers with the new Help to Buy: ISA and I’m delighted that a quarter of a million people have already taken advantage. It is all part of our plan to back working people who are doing the right thing and saving for their first home.”
Help to Buy ISAs give first-time buyers saving for a deposit the opportunity to put away £200 a month in a dedicated ISA that the government will top up by 25%, up to a maximum of £3,000.
You can open an account with a one-off lump sum of up to £1,000 in addition to the monthly maximum, while couples buying together can combine their bonuses, giving them boost of up to £6,000 towards a deposit for a first home.
Halifax currently offers the highest interest rate at 4%, followed by Virgin Money at 3%. Other banks and building societies offering Help to Buy ISAs include Barclays, Lloyds Banking Group, Nationwide, NatWest and Santander.
Help to Buy London was launched on 1 February and gives aspiring homeowners who have been frozen out of the market in London the opportunity to get on the housing ladder.
First-time buyers with a 5% deposit will be able to borrow up to 40% of the value on a new home priced up to £600,000. They will need a mortgage of 55% to cover the rest.
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