2 in 3 first-time buyers will use Government scheme
A massive 63% of those who want to buy their first property plan to take advantage of the Government’s new Help to Buy ISA scheme, according to research from Moneysupermarket.com.
The survey showed that 33% of people planning to buy a house in the next five years will definitely be taking out a Help to Buy ISA to help them save, while a further 30% say they probably will. Nearly a third (27%), however, are still undecided.
The research also revealed that of those first-time buyers who are going to open one of the tax-free, State-boosted savings pots, over three quarters (82%) think that Help to Buy ISAs will help them get onto the ladder earlier than planned.
Nearly a fifth (19%) think it will help them get on the ladder a year earlier than planned, while a third (34%) said it will enable them to buy their house three months earlier than they thought.
The new scheme will see the Government provide a £50 top up for every £200 an individual saves (capped at £3,000) towards their first home.
Kevin Mountford, banking expert at MoneySuperMarket said: “The introduction of Help to Buy ISAs for first-time buyers is a huge bonus to those wanting to get on the property ladder.
“I am pleased to see that so many people plan to use the initiative to help them buy their first home, and with more and more products being launched to take advantage of the new rules, competition is hotting up and consumers will have a wide range of choice when it comes to choosing the best Help to Buy ISA.”