West Brom Building Society has added a Help to Buy ISA to its range of savings accounts.
The product, available to buyers saving specifically for their first home, comes with an interest rate of 2 per cent.
As part of the H2B scheme, the Government will contribute 25 per cent of what the first-time buyer has saved in their ISA toward purchasing a home. Up to £1,200 can be deposited by the FTB in the first calendar month, and they can then add up to £200 in subsequent months.
Interest is paid annually and must be credited to the account. Transfers in from other H2B ISAs and non-H2B ISAs are accepted.
West Brom’s product manager for savings Sophie Dwyer says: “We have a good track record of lending to first time buyers to support their aspirations for home ownership, so adding a Help to Buy ISA to our portfolio is a logical next step.
“It means we can offer assistance to those customers who want to get onto the property ladder but still need time to save the necessary funds for a deposit. If they can secure an additional contribution from the government, as well as a competitive rate of interest, then hopefully that savings goal can be achieved a little more quickly.”
The minimum government bonus payable to a saver with a Help to Buy ISA is £400. In order to qualify, the account balance must be at least £1,600 at the time when the customer is ready to purchase their property. The maximum bonus receivable is £3,000 which would require savings of £12,000.
Withdrawals can be made from the West Brom’s H2B ISA at any time. However, any funds withdrawn before the account is closed will not be eligible for a Government bonus.
Property purchased using the scheme cannot exceed £250,000, or £450,000 in London.