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. The insight by MoneySuperMarket further showed that for 33% of people that plan to buy a house in the next five years, they 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. For those who plan to take advantage of the extra savings boost, 32% plan to put the money towards their deposit, while a further 13% plan to use it to cover the cost of stamp duty. Other planned uses are to cover the cost of legal fees (10%), furnishing their new home (15%) and home renovations (9%).
More than eight in ten (82%) of those who plan to take advantage of the Help to Buy ISAs think that it will help them get on 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 3 months earlier than they thought, and 21% say it will help them buy a house six months earlier.
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. With the Government providing up to £3,000, this could be a substantial chunk towards a first home, and could effectively pay the entirety of stamp duty or legal fees, for example.
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.”
