Martin Lewis has appeared on This Morning to issue a warning to those looking hoping to buy a property in the future. The Help to Buy ISA scheme offers first time buyers great savings but the deadline for applying is tomorrow. What are the best bank accounts to get?
Those who have never bought a house before could save by opting for a Help to Buy ISA, the expert explained.
The scheme gives savers a bonus on top of the money they put in, but the deadline for opening one is fast approaching.
Martin said: “Whether you’re 16 or 116, the most straightforward form of help for first-time buyers is a Help to Buy ISA.
“Save in it and the state adds a 25 percent bonus towards a mortgage deposit, so each £1,000 becomes £1,250.”
Those hoping to benefit from the deal must act fast as they only have until tomorrow night to apply.
After the deadline has passed, Martin explained it is unlikely Britons will ever be able to sign up for a Help to Buy ISA.
However, savers can get the benefits by putting as little as £1 into the account before tomorrow.
“It closes tomorrow but open one by then, even with just £1, and you can keep saving until 2029 and still be eligible for the added bonus until 2030,” Martin added.
“The Help to Buy ISA’s replacement, the Lifetime ISA , also offers the 25 percent boost – but it’s available to fewer people, and while better for some, is worse for others.”
More information on what savers need, the best buys and comparisons can be found on Martin’s ‘Help to Buy ISA’ guide. https://www.moneysavingexpert.com/savings/help-to-buy-ISA/
Help to Buy ISA’s can be opened with a number of banks, but the expert revealed the best accounts to sign up to.
He said: “The top payer is Barclays at 2.58 percent AER, yet if you don’t already bank with it you’ll need an in branch appointment and most of those are booked up.
“The top account everyone can open online is Nationwide at 2.5 percent AER.
“Yet it is struggling with demand; many who opened it over the last week have told me they haven’t heard back – I’ve spoken to it and it confirms the key is that you submit an application, even if you don’t get money in, though I’d still take a screen grab.”
A Help to Buy ISA can be set up by anyone over the age of 16 if they have not bought a property before.
Martin urged Britons to sign up and to let other first time buyers know about the deal.
“If you’ve got teenage children, 16 or over, who are eligible and they don’t know about it, talk to them ASAP.
“And while the official deadline is 11.59pm on Saturday, as some providers require you to make in-branch appointments, the practical last chance dates are earlier.
“This may be a moving feast, so for the up-to-the-minute rundown of rates and deadlines see Martin’s guide linked above.”