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Five ways the budget affects the first time buyerFinance, Mortgages, New Home News March 23, 2015 - 11:53 am No Comment
The last budget has now passed before the 2015 general election and this is the time to gain support for what is promised to be an exciting few weeks in the world of politics. But what does this budget mean for the first time buyer? Below are five reasons why the budget is looking after those looking to get on the property ladder.
- Save £200 and the government will put in £50
Under new legislation from Wednesday’s budget, those who are looking to buy their first property now have the added advantage of a £50 government contribution for every £200 saved. The savings will have to be put into an ISA account, with persons aged 16 and over able to join.
- Up to £3000 to earn
George Osborne announced that the aspiring first time buyer can be in receipt of up to £3000 providing that they save £12,000. This is a massive help to those that really struggle to save for a deposit. The scheme essentially saves you a quarter of the time that it would of otherwise taken to save for a deposit.
- It’s tax free
The ISA account that you will be paying into is also tax free! The savings must of course go towards a deposit, but with the added advantage of not paying tax then you’re able to get to the chance to own your own home even quicker.
- The scheme can run alongside help-to-buy
Those of you who have signed up for the help-to-buy or the mortgage guarantee scheme need not fear as this proposal can run alongside the initiative. You will need £1000 to start the scheme and can be used for homes costing up to £450,000 in London and £250,000 outside of the capital.
- Anyone can join
The good news is that anyone who does not own a property can join the scheme and open an account. This essentially means that couples wanting to buy their first home can claim up to £6,000 when buying together. Therefore if two people are buying as a couple, they could own their own property twice as quickly as you otherwise could have without the scheme.
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