There are certain milestones we are all expected to hit as adults: learning to cook, passing the driving test, successfully getting out of debt, getting an adult job, outfit coordination, knowing what to do in emergencies and undoubtedly, buying a house.
It can be incredibly daunting, and depending on which area/type/how many bedrooms etc it can be the single most expensive purchase of your short life. However, saving can be manageable in little steps. Plus, the government is worried about the percentage of young people getting onto the property ladder so have put in placed several schemes to ensure you get there.
2. Help to Buy ISAs
This handy scheme is available to all first time buyers. If you’re buying as a couple, be sure to open up individual accounts to maximise the amount of bonus you can earn. Essentially, the deal is the government will add 25% of your total savings, up to £3,000. In your first month, you need to deposit £1200 to receive maximum bonus, and after that £200 monthly. As well as the government contribution, you’ll also be collecting a cool 4% interesting on the savings, so the longer you save the more you’ll reap.
You’ll need to ensure the house you’re purchasing is lower than £250,000 or £450,000 in London. You can use it alongside a Help to Buy Mortgage, or singularly; however you wish. You can only open one Help to Buy ISA, however you’re free to transfer the funds from providers to incur the highest interest rates.
