The Mortgage Store

The Chancellor has announced that first-time buyers will receive a helping hand onto the property ladder through the introduction of a new Help-to-Buy ISA. According to The Chancellor, the new scheme intends to "tackle two of the biggest challenges facing first-time buyers: low interest rates on savings and the high deposits required by the banks to secure a mortgage".

The scheme will see savers benefiting from a 25% top-up on monthly savings of up to £200. This means that if a first-time buyer was to save £12,000 over a five-year period, the government will chip in an extra £3,000 towards a deposit. This could potentially be doubled if a young couple uses this scheme to save together, with an additional £6,000 available to them when they buy a home.

There is also the possibility of combining the new Help to Buy ISA with other existing buying incentives.