Just as the UK’s millennials finally thought we were getting the lift onto the property ladder we needed with the Help-to-Buy ISA, the rug has well and truly been pulled from under our feet.
I’d say I’m outraged, it’s not what i’m thinking in all honesty, but for the sake of my mother I’ll keep those particular words to myself.
Not for the first time, we’ve well and truly had our pants pulled down.
When George Osborne stood there proudly announcing the ground breaking Help-to-Buy ISA, he was clear in its intention.
The Help-to-Buy ISA was designed to give anybody with aspirations of owning their own home a leg up onto the property ladder, with the government to add a 25% uplift on anything you’d saved to a maximum of £3,000.
Its aim was to help alleviate some of the associated pressure of finding an extortionate deposit for first-time buyers.
The banks jumped on this, of course, and went on to sell us the Help-to-Buy ISA on the provisos mentioned above.
Here’s an example from the websites of a couple of major high street banks:
What changed with the Help-to-Buy ISA?
There is only one problem with all this.
After being sold on much needed help with our deposits, we’re now informed the 25% government bonus can only be claimed after the deposit has been made and the sale of your property is complete.
I think this is where the government have got a bit confused.
You see, I, like many others, am not going to struggle to pay a mortgage that is less than half the rent I pay now.
I didn’t need the government to help me out with the first five months mortgage payments, I’m perfectly fine sorting that myself, as I just said I’ll be better off.
However, replacing the £2,000 – £3,000 as a couple we were assured we would be entitled to claim, is going to present rather a large obstacle, significantly increasing the time we’ll now need to save.
The governments information pages NOW contains the following wording:
bonus cannot be used for the deposit due at the
exchange of contracts, to pay for solicitor’s, estate agent’s fees or any other indirect costs associated with buying a home.
This was only made more prominent, however, when concerns were raised by The Telegraph.
For me, personally, I only opened a Help-to-Buy ISA to get the help I needed towards the deposit.
Now that’s been taken away, this ISA will probably be pretty useless to me.
I’m considering leaving what I already have in there alone, just to make sure I get the 25% extra further down the line.
But, as for any future monthly payments, they’ll be invested elsewhere so i can see a more significant return on my money than the 2% currently offered by Santander.
Basically I feel like I have been mis-sold this and shafted on an epic level.
I’m angry and left wondering why I bothered in the first place.
I’ll send this blog to a few MPs, let’s see how many have the guts to respond!
Do you sign up for a Help-to-Buy ISA? Has it set your projected time of moving way off course?
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