Chancellor George Osborne announced in this year’s Budget that, as of today (1 December), the government will contribute a bonus of 25 per cent, up to £3,000 per person, for Help to Buy Isas.
This can boost a Help to Buy Isa savings pot of £12,000 to £15,000 for the purchase of a first home.
The new Isas allow savers to deposit up to £1,200 within the first calendar month of funding the account, and then up to £200 a month thereafter.
Available from 17.12.15.
Bank of Scotland
Portfolio ISA option available. Also cashback of up to £1,750 for first-time buyers accessing the Nationwide Save to Buy mortgage range.
Portfolio Isa option
Rate includes a 1.00% conditional bonus. Bonus interest rate requires at least one deposit and no withdrawals in each calendar month to qualify. Custom Isa option also available.
2.00% for 123 World and Select customers.
Virgin Money has unveiled a rate of 3 per cent. It has also launched a new ‘Saving to Buy’ account, offering interest of 1.30 per cent.
Existing Santander 123, World and Select customers will receive 2 per cent tax free interest, and all other customers will recieve 1.5 per cent.
Savers who have paid into a cash Isa in this tax year can transfer the funds into the Help to Buy Isa, subject to its funding limits.
Newcastle Building Society (NBS) has launched a Help to Buy Isa with a flat rate of 1.5 per cent.
NBS has also unveiled the Newcastle First Home Isa which aims to help first time buyers make full use of their Isa allowance.
The NBS First Home Isa comes with a rate of up to 1.15% and offers a cash back option of up to £1,000 if savers go on to take out a mortgage with the Newcastle.
Yesterday (30 November) Halifax revealed it was offering a rate of 4 per cent.
Mark Hayward, managing director of the National Association of Estate Agents (NAEA), said: “The Help to Buy Isa is a great initiative and will provide a boost to first time buyers (FTBs) hoping to make the climb onto the property ladder.
“It seems as though first time buyers are at the top of the government’s agenda following the further helpful initiatives announced during last week’s Autumn Statement – which means that we might finally begin to see FTBs cutting through the market.”