Six of the UK’s biggest lenders have signed up to the Government’s Help to Buy Isa scheme.
Barclays, Lloyds, Nationwide, NatWest, Santander and Virgin Money will offer the new savings product from 1 December.
Launched by the Government in the March Budget, the scheme offers savers a 25 per cent bonus if they use those savings to buy their first home.
A maximum of £200 can be saved each month, with the Government contributing up to an additional £50. The maximum Government contribution will be £3,000 per Isa. The bonus is available on homes worth up to £450,000 in London and £250,000 outside London.
Chancellor George Osborne says: “This Government is determined to help working people and encouraging the aspiration to homeownership is central to that.
“That’s why I’m delighted that so many British banks and building societies have already signed up to offer the Help to Buy Isa from December, which will reward thousands of people who are working hard to save for their first home by giving them a 25 per cent boost to their deposit savings.
“This is in addition to the 200,000 people helped onto the property ladder by government-backed schemes in the past five years, and the 1.3 million housing association tenants who will be helped by the extension of Right to Buy.”
Lloyds Banking Group managing director of retail customer products Stephen Noakes says: “We welcome the support that the Help to Buy Isa will offer first-time buyers and believe it provides a genuine solution to the challenge of raising a deposit.
“We know that this is the key barrier when trying to buy a first home and the Help to Buy Isa will reward positive savings behaviour and make a real difference in helping young people get onto the property ladder faster.
“We are fully committed to providing this valuable assistance to our customers.”
Nationwide executive director for group retail Chris Rhodes says: “As one of the UK’s largest mortgage and savings providers, we feel it is important to be involved in the Help to Buy Isa scheme from day one.”