Help to Buy ISAs – What first time buyers need to know

In March 2015, the Government outlined a new Help to Buy ISA and has recently released more details. It sees the Government adding £50 to every £200 first-time buyers manage to save towards a deposit for their first home.

First Time Mortgages

When does it begin?

The start date for the scheme will be the 1st December 2015, and it will run for four years. You can open this account anytime within this four years.

Who is it for?

It’s only available to first time buyers, and just like a cash ISA you must be aged 16 and over. If you’re buying with someone who isn’t a first-time buyer, they won’t be able to open one but you will be as the account is available per person rather than per home.

What type of house can I buy with it?

You’ll be able to use the Help to Buy ISA for house purchases up to £250,000, or if you are in London up to £450,000. This ISA is for a residential mortgage only and can either be for a new-build home or a second-hand home.

How much could I put in my account every month?

The maximum amount you can contribute monthly is £200, with an initial deposit of up to £1,000. The Government will then add in 25% of what you pay in every month. There is no minimum monthly deposit required.

A maximum government bonus that can be achieved through the scheme is £3,000.

Will interest rates be added on?

You will earn interest rates like a normal cash ISA and also the government bonus added on at the end.

The bonus will apply to both the amount a person saves into their Help to Buy: ISA and the interest that is built up during the period the account is open.

Where can I get one?

Some of the banks and building societies announced participating in the Government’s scheme are Barclays, Lloyds Banking Group, Nationwide, NatWest, Santander and Virgin Money.

When do I get the bonus?

The scheme will be designed to ensure that the government bonus is used as intended. The government bonus will therefore only be paid at the point a first home is purchased.

What is the scheme duration?

Once an account is opened there is no limit on how long you can save into the Help to Buy ISA. There is also no time limit on when you can use your government bonus. But you will stop earning a bonus from the government once you reach £12,000.

Can I pay into a cash ISA and a Help to Buy ISA at the same time?

You can only pay into one cash ISA in a tax year. You would not be able to pay into both a cash ISA and a Help to Buy ISA at the same time.

If you’re a first time buyer in Aberdeenshire looking to make your first step onto the property ladder, call us now for mortgage and protection advice on 01224 316 200 or fill in our online enquiry form.


Help to Buy ISAs are not regulated by the Financial Conduct Authority. Terms and Conditions apply.

Please note that Aberdeen Mortgage Company Ltd do not offer or provide advice on Help to Buy ISAs.

The above text is high level generic information only and should you require detailed or specific information on the products available, you should seek specialist advice from a suitably qualified source.


BBC News – “Banks offering Help to Buy ISA named” published 25th July 2015.

HM Treasury – “Help to Buy ISA scheme outline” published 18th March 2015

HM Treasury – “Help to Buy ISA fact sheet” published 22th July 2015


Highest level of First Time Buyer products since 2007

New data from Moneyfacts show that the amount of products available to First-time buyers has reached its highest level since 2007, with the number of 90% and 95% loan-to-value mortgages now totalling at 723 products.

This marks a 73% increase on five years ago in 2010, when buyers with small deposits only had the choice of 194 products. In in 2013 there were 437, last year there were 600 and now there is 723.

With low mortgage rates and an increase in products, it looks like lenders are finally recognising the importance of first time buyers.

Charlotte Nelson, finance expert at Moneyfacts says “The improving higher-LTV market is also not an indication that riskier lending has returned, as the Mortgage Market Review is now firmly entrenched in bank policy, and only borrowers with a squeaky clean credit history and enough savings will be able to make the first step onto the housing ladder.

For more information on how we could help you step on to the property ladder, call us on 01224 316 200 or fill in our online enquiry form.

Source: Published: 06/07/2015