Nationwide has seen its first customers cash in on the Help to Buy ISA, finding success in buying a property using the scheme.
The ISA (Individual Savings Account) allowed people to make more headway when saving up for a deposit. The government matched the amount that a saver put into the ISA, up to certain limits, meaning people could save for a deposit much faster.
Nationwide, one of the banks and building societies offering the scheme, has seen a number of people take advantage of the government bonus; 40 first time buyer in all have capitalised on the scheme since it went live on 01 December last year.
More than 40 aspiring buyers have closed their ISA accounts with Nationwide in order to cash in on their savings and get their bonuses for their mortgage.
It is thought that over 250,000 people have opened a Help to Buy ISA in the first 2 months of the scheme being available.
Four in five of those who opened an ISA with Nationwide reportedly filled it with the maximum amount possible for the first month, and the average balance overall is £951. It shows that people are trying to save up, and the Help to Buy ISA was the opportunity they needed to maximise on their savings.
In total, the government will offer a bonus of £3,000, which is often just enough to help boost people far enough to give them a mortgage deposit which is compelling enough for a lender.
Deposits are the first and, in a lot of cases, biggest hurdle to overcome when looking to buy a first property. The schemes are trying to combat this, to get more people into the market, and reduce the number trapped as part of ‘generation rent,’ and get the mortgage market thriving again.