Major lenders join Help to Buy ISA scheme
Barclays, Lloyds Banking Group, Nationwide, NatWest, Santander and Virgin Money will all offer the new Help to Buy ISA following discussions with government.
The scheme will launch on 1 December 2015 and will see the government offer cash to first-time buyers who are saving a deposit.
Under the scheme, first-time buyers will be able to save £200 a month in a dedicated ISA that the government will then top up by 25%, up to a maximum of £3,000.
Announced in the Budget in March, the Chancellor George Osborne said it would help more people onto the property ladder.
The government said buyers currently struggled to raise a sufficient deposit due to the low interest rates on offer in the savings market.
First-time buyers will also be able to open their account with a one-off lump sum of up to £1,000, in addition to the monthly maximum.
Chancellor of the Exchequer George Osborne said: “This government is determined to help working people, and encouraging the aspiration to home ownership is central to that.
“That’s why I’m delighted that so many British banks and building societies have already signed up to offer the Help to Buy: ISA from December, which will reward thousands of people who are working hard to save for their first home by giving them a 25% boost to their deposit savings.
“This is in addition to the 200,000 people helped onto the property ladder by government-backed schemes in the past five years, and the 1.3 million housing association tenants who will be helped by the extension of Right to Buy.”