The government will now GIVE you 20% of your deposit

Graham_Devon

Osborne announced at the budget that a new "Help to buy ISA" is on the way.

For every £200 you save, the government will GIVE you £50 extra.

I will make use of this, be silly not to (depending on the fine print!) but it's simply astonishing. The government is now GIVING people money to buy a house!

chewmylegoff

Per the budget speech it is restricted to first time buyers - I thought you already owned a property?

Graham_Devon

chewmylegoff wrote: »

Per the budget speech it is restricted to first time buyers - I thought you already owned a property?

Darn it, missed that.

Ways around that though, lets face it.

kabayiri

Graham_Devon wrote: »

Darn it, missed that.

Ways around that though, lets face it.

It works for offspring and relatives. It's very Christian to help those around you

chewmylegoff

Graham_Devon wrote: »

Darn it, missed that.

Ways around that though, lets face it.

True.

This is most obviously helpful for people with access to the bank of mum and dad who can now transfer their gifted deposits into an ISA in order to receive a top up from the govt.

Graham_Devon

chewmylegoff wrote: »

True.

This is most obviously helpful for people with access to the bank of mum and dad who can now transfer their gifted deposits into an ISA in order to receive a top up from the govt.

And buy a house that's been reduced by 20% by the government...

They will be giving tokens out with each box of Cornflakes soon!

setmefree2

chewmylegoff wrote: »

True.

This is most obviously helpful for people with access to the bank of mum and dad who can now transfer their gifted deposits into an ISA in order to receive a top up from the govt.

And this is what I will start doing asap.

Nuts though.

Any information on annual limits or anything?

Found this

Accounts will be available from autumn 2015 with an initial deposit of £1,000 and be available for homes up to £450,000 in London and £250,000 outside of London.

Budget documents state: “The scheme will work by providing a government bonus to each person who has saved into a Help to Buy: ISA at the point they use their savings to purchase their first home.
“For every £200 a first time buyer saves, the government will provide a £50 bonus up to a maximum bonus of £3,000 on £12,000 of savings.
“Savers will have access to their own money and will be able to withdraw funds from their account if they need them for another purpose but the bonus will only be made available for home purchase.”

stator

Any word on limits? Is the £200 pcm a limit or an illustrative figure?
If I have a deposit of £10k already, can I slap that into a HTB ISA and instantly get £2.5k added on?
Does the money have to be used on HTB? If so, which scheme? HTB:EL only? HTB:MG?

setmefree2

stator wrote: »

Any word on limits? Is the £200 pcm a limit or an illustrative figure?
If I have a deposit of £10k already, can I slap that into a HTB ISA and instantly get £2.5k added on?
Does the money have to be used on HTB? If so, which scheme? HTB:EL only? HTB:MG?

See above #7

ziggycj

Should be good for me. I'm almost 24 and still living with my parents so I can save up a deposit. A £3000 boost still wont do much in London, but every little helps.


According to this, I just need to save £200 p/m for the next 5 years to get the full £3000 (Correct me if I'm wrong).

ziggycj

This is the link to the official info: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/414027/FTB_factographic_final.pdf


The limit is £200 per month so £2400 a year.