Aldermore launches Help to Buy ISA

Aldermore is launching a Help to Buy ISA under the new government scheme on 1 December.

Originally announced by Chancellor George Osborne in the March Budget, the Help to Buy Isa offers a major tax break to those saving up a deposit for a property.

The ISA allows savers to put away up to £200 a month, which the government will boost by 25% when they buy their home, up to a maximum of £3,000.

In the first month, savers will be able save £1,200, an extra £1,000 on top of the monthly maximum of £200.

Aldermore said that savers who either have an existing cash ISA for the current tax year or intend to open one, can also open a Help to Buy ISA from 1 December, providing their maximum annual contribution does not exceed £15,240. Alternatively, the bank can also accept transfers from other ISA providers.

Recent research conducted by Aldermore revealed awareness of the Help to Buy ISA is highest among 18-24 and 25-34 year-olds.

The study also found that same age groups believe the forthcoming changes in the savings industry will encourage them to save significantly more than other age groups.