Aldermore has revealed it will launch a Help to Buy: ISA on 1 December 2015.
The new product has been designed to support people looking to buy their first home and allows savers to put away up to £200 a month, which the government will increase by 25% when they buy their home, up to a maximum of £3,000. In the first month, savers will be able save £1,200, an extra £1,000 on top of the monthly maximum of £200.
In addition, savers who either have an existing cash ISA with Aldermore for the current tax year or who intend to open one; can additionally open a Help to Buy: ISA from 1 December too (providing their maximum annual contribution does not exceed £15,240). Alternatively, the Bank can also accept transfers from other ISA providers.
The launch follows recent research conducted by Aldermore showing awareness of the Help to Buy: ISA is highest among 18-24 and 25-34 year olds. The same age groups said the forthcoming changes in the savings industry will encourage them to save significantly more than other age groups.
48% of the UK believe the introduction of the Help to Buy: ISA will have significant benefits, compared to 27% who don’t think it will.
Charles Haresnape, group managing director of mortgages at Aldermore, said: “Aldermore’s launch of the Help to Buy ISA further underlines our commitment to helping first time buyers get on the housing ladder, and the government’s increased support for those struggling to save a deposit will be a positive influence on the market.
“As part of both the Help to Buy mortgage guarantee and equity loan schemes, Aldermore is proud to support customers who are looking for their first home and support initiatives such as this across the board, lowering borrowing age limits and expanding the eligible family members for our Family Guarantee mortgage product in order to provide tailored finance options.
“Aldermore’s statistics show that the Help to Buy scheme has functioned as planned, with our average applicant for Help to Buy a first-time buyer from the North West, and the Help to Buy ISA will be another valuable resource for those looking to buy their first home.”