If you are a first-time buyer you will probably be aware of the Government’s Help to Buy ISA - a first-time buying scheme which started on the 1 December 2015.
As part of the scheme a first-time buyer can save up to buy a house worth £250,000 or less outside the capital or up to £450,000 if it is based in London. For those people buying on the fringes of London, in the South West for example, this is a major concern, as prices are already much higher than the national average. The Treasury has based the London boundary on the information set out by the ONS, Office for National Statistics, the higher purchase limit includes 32 boroughs of London plus London, here is a map of the areas where you could benefit from the higher cap.
If you are a first-time buyer and are looking at accessing the scheme you will need to be 16 years of age or over, and it must be the first property you have ever owned in the UK or abroad. If you and your partner are both considering setting up individual Help to Buy ISA, then this will have to be the first property you have both owned, enabling you to access double government bonuses. If either you or your partner has owned a previous house then only one of you will be able to set-up a Help to buy ISA.
The minimum amount you can pay into the scheme is £1,600 giving you a bonus of £400, the maximum bonus you can receive is £3,000 for each ISA. You will also see a return of 4% on your ISA savings.
The other downside to this new government scheme is that as property values continue rise the amount you can receive in bonuses will remain the same.