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Showing posts from January, 2016

Help to Buy ISAs - Destined to fail the first time buyer

There is  a great deal of buzz surrounding the Government backed Help to Buy ISA Scheme ( available since the 1st December 2015)  and in this article I look to explore the 'ins and outs' of the scheme as well as assessing whether it is likely to be successful.
How does it work?
You open an ISA account and the Government will top up your savings by 25% according to how much you add to the account.
You can add in the first month £1200 but there after you can only add a maximum of £200 per month.  You will only be entitled to the Government bonus once you have accumulated £1600.
The maximum amount you can save in a Help to Buy ISA is £12,000.
So the minimum Government bonus is £400 ( once you have reached the minimum amount ) and £3,000 if you accumulate the full 12,000 ( which will take around four and half years).
Help to Buy ISAs are available to each first-time buyer, not each house, so if you’re buying a property with your partner, for example, you’ll be able to get up to £6,…