Buying Your First Property Could be Easier Than You Think!
We all know how difficult, if not almost impossible it is for our younger generation to get their foot on the property ladder. Inheritance or years of hard work and saving are options. Or, as is so often the case; The Bank of Mum and Dad.
Successive governments have tried various incentives to help first time buyers, along with continually promising to ‘build more affordable houses’.
The present government introduced the ‘Help to Buy scheme’, which alongside the ‘Shared ownership’ and ‘Equity loan’ schemes are one of the ways for first time buyers to own their own home.
The help to buy scheme works by incentivising those trying to own their first property by encouraging them to save money into a ‘Help to Buy ISA’. For every £200 that is saved (and this is the maximum that can be saved each month, £3,600 in any one year), the government will contribute a further 25%. The maximum contribution from the government totals to £3000.
These ISAs are available from a number of Banks and Building Societies.
Not everyone however will be eligible for the scheme and in order to qualify for the scheme you would need fulfill the following requirements:
Be over 16 years of age.
Have a National Insurance number
Be a United Kingdom resident
Be a first time buyer
The property must be in the United Kingdom and have a maximum purchase price of £250,000 (£450,000 if in London).
Additionally, this Buy to Let ISA must be the only ISA you have opened in the current financial year.
One point to remember is that if you have an existing ISA you can transfer it into your Buy to Let ISA.
Equally important is that the property must be the only property you own (it must be where you intend to live) and the property must be purchased with a mortgage.
The government have an official Help to Buy site where further helpful information can be obtained.