Saving up for a deposit for a mortgage can take years and requires a lot of commitment so it is important to choose the right products to help save you money. here we outline several options you should consider.
Help to Buy ISA
The Chancellor announced in the March 2015 budget, the introduction of Help to Buy ISAs available from Autumn 2015. These are aimed to help people who are saving up for a mortgage to buy their first home. For every £200 saved into the account, the government will pay a 25% bonus of £50 up to a maximum of £3000. This bonus is then used for the purchase of a home up to the value of £250,000 or £450,000 in London. It is possible for two people who are saving for a mortgage together to both receive a bonus as the accounts are per person rather than per household. Any interest you earn from your help to buy ISA will be tax free, however, you must make sure that you don’t pay into another cash ISA in the tax same year.