Saving for your first home

We understand how hard it can be to take your first step onto the property ladder which is why we are taking part in the government’s Help to Buy: ISA initiative.

 

Please note: This ISA is only available for first time buyers in the North East in the following postcode areas: NE, SR, DH, TD10 - 15, DL, TS, CA1 - 17.

How does the Help to Buy: ISA work?

Available for first time buyers in the following North East postcode areas - NE, SR, DH, TD10 - 15, DL, TS, CA1 – 17 - the Help to Buy: ISA is designed to reward people who are saving for their first home. For every £200 you save, you’ll earn a £50 government bonus, subject to a minimum balance, up to a maximum of £3000.

Good to know

  • Available for anybody aged 16 or over saving for their first home;
  • You can save up to £1,200 in the first month, then up to £200 each month thereafter;
  • The government adds a 25% tax-free bonus (up to a maximum of £3,000) on to your savings when you go on to purchase your first house;
  • The minimum amount you will need to save to receive the government bonus is £1,600 (£400 bonus);
  • This product is an ISA, and you are only able to open the account in an individual name. However, if you are purchasing a house with another person you can both open separate Help to Buy:ISAs and receive a government bonus for each account. That means you could earn a government bonus of up to £6,000.

When will I receive my bonus?

When you are ready to buy your first home, you will need to instruct your solicitor or conveyancer to apply for your government bonus. Once they receive the bonus, it will added to the money you are putting towads your home. It must be included with the funds consolidated at the completion of the transaction; it cannot be used for

the deposit on your first home due at the exchange of contracts, to pay for solicitor’s fees, estate agent’s fees or any other indirect costs associated with the home buying process.

when you are close to buying your first home, you will need to instruct your solicitor or conveyancer to apply for your government bonus. Once they receive the government bonus, it will be added to the money you are putting towards your first home. The bonus must be included with the funds consolidated at the completion of the property transaction. The 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. - See more at: https://www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work/#sthash.Ft8gPuAN.dpuf

 

What level of government bonus could you earn?

We have developed a helpful interactive calculator to help you see how the government’s Help to Buy: ISA and Newcastle First Home Saver work together. Use our calculator to help you understand how CustomISA could help you save for your first home.

Amount in
Help to Buy:ISA

 

Government
Bonus

£1,600 (minimum to get bonus)   £400
£4,000   £1,200
£7,000   £1,750
£10,000   £2,500
£12,000   £3,000

 

What if I want to save more than £200 a month?

Under the ISA rules you are not permitted to open more than one ISA in each tax-year, however, with our CustomISA facility, you’re no longer tied to a single ISA product. This means you can save and take advantage of the full ISA allowance each year, and save more than £200 a month in your ISA tax free.

In order to help you save towards your first home even more quickly we have launched the Newcastle First Home ISA, designed to be used alongside the Newcastle Help to Buy: ISA.

How to apply

You can apply online for each of our savings accounts - simply follow the links at the bottom of each product page. If you would like to find out more about our full range of savings accounts or make an application in person, book an appointment at your local branch.