The government will now GIVE you 20% of your deposit

Physics

stator wrote: »

What's the source of that fact?

The Budget documents.

https://www.gov.uk/government/publications/budget-2015-documents

theEnd

I don't even think the take up would be high.

How many young adults can afford an normal ISA now? They're either making just enough to live, or they're paying off student debt, or they (or their parents) are loaded.

Whichever, the take-up of this will be small. Those who make the 4.5 years will be tiny.

Nearly a £1bn/year!!! Most of that will go to civil servants and bankers.

Physics

To be fair, it's only £1bn/year by the end of the scheme. To start with it's 'only' several hundred million per year.

CLAPTON

Graham_Devon wrote: »

Yes, realise that. But my point was that I doubt many will actually gain much from it, but I reckon the take up would be high.

My example of the large car bill was a suggestion for where the idea to use these accounts are great, but the actual realities may prevent people benefiting from them.

Yet the taxpayer is still paying to run the accounts.

the banks and building societies will run the schemes; nonsense though they are.

tara747

Killerseven wrote: »

So what has the title got to do with this £3000 after 5 years of saving £200mnth?

How is the gov giving you your 20% deposit? Are you talking about buying a house for £60K in 5years time? That would make the gov giving you £3K the 20% deposit if an average house will be £60K by then.

1. Read the title of the thread. 20% OF your deposit, not a 20% deposit.

2. £3k is 5% of £60k, not 20% of £60k.

Jesus wept.

N1AK

Graham_Devon wrote: »

Not as good as it first sounds then. £3,000 isn't anything to be sniffed at, of course, but if it takes 5 years to get the full 3k, seems almost not worth it.

Given the cost of administering the scheme, it wouldn't shock me if they spend nearly as much on that as they actually give in support.

Anyone already capable of raising a deposit would likely be best buying now rather than risking 5 years price inflation for the sake of £3k.

Things seem to be getting mighty confusing on the ISA front. Announcements to make the first £1k of interest tax free make ISAs pointless for most plebs, is this HTB ISA actually an ISA that uses up part of your allowance, and stops you opening another ISA in the same year?

Graham_Devon

IveSeenTheLight wrote: »

Not worth it? Are you for real.
This equates to a 25% ISA.

Anything on the market offering that?

If your saving for a property, it's a no brainer to save in a 25% return scheme.

I'm for real, yes.

I'm not going to hold out for 5 years to get the maximum 3k on this ISA, and I doubt many will either.

Secondly, it's likely if you do hold out for 5 years, the 3 grand you have achieved for free will be wiped out by the increase in HPI over the 5 years.

Not to mention having to rent for longer to benefit from the maximum.

Like I say, worth doing if you are saving a deposit anyway - nothing to lose. But attempting to hit the maximum would be a bit silly IMHO.

Find it bizzare that it's you asking if I'm for real considering the amount of times you've stated it's silly to wait to buy a house in the hope you get some money off.

Graham_Devon

One question on this I haven't seen covered elsewhere.

Can a couple who buy a house have an ISA each? Therefore doubling the cash available?

If you are looking to buy in the next year, and already have some of the deposit (or all of it), would be silly not to funnel money into these ISAs. As a couple you could get 500 straight away and a further £1,100 over the year. £1,600 extra for your deposit from nowhere.

One person has already been on the radio asking when they start as he's close to buying a house and therefore wants the free £250. Fair play I guess! Thinking about it, I guess most of these ISA's will be used in this way.

padington

Asking prices may factor this and possible inheritance tax relief up to a million over night. Which will give some 'positive' property price headlines just before the election.

brit1234

Got to do the sums, but need to know how it affects my other ISAs and if it stops me putting money into those.

Still doesn't make up anywhere near what the conservatives have stolen from my house deposit with its funding for lending scheme.