If you are tying to get on the housing ladder, have you considered taking advantage of help from the government towards increasing your deposit.
Savings in the HBISA earn tax-free interest, and the Government will add a bonus to the amount saved when the money is used as a deposit on the saver’s first home. For these purposes, a ‘first-time buyer’ is someone who has never owned an interest in a residential property, either in the UK or abroad.
This means that if a couple buy their first home together and each person has saved £12,000 in a HBISA, jointly, they will receive a Government bonus of £6,000 (£3,000 each). This will increase their deposit from £24,000 to £30,000.
It is not necessary to have identified a property to buy in order open a HBISA, or indeed have a definite plan to buy one. They can be used as a savings account, with the added benefit that the Government will add a bonus if the funds are used as a deposit for a first home.
The Government bonus on the HBISA is generous, and it is worth opening an account if you have not previously owned an interest in a property, even if just on the off chance that you may buy a home before 2030. Parents or grandparents can give their children money with which to save, but the child must open the account in their own name themselves.