It must be said that saving money is one of the most important aspects in the property buying process. The significance of the deposit in obtaining a mortgage, and buying a home, cannot be overlooked. Most property buyers can benefit from assistance when it comes to saving money and the launch of the Help To Save Scheme in 2018 should be of interest to many people, including those looking to get on to the property ladder.
It is not as though the scheme is solely for people looking to buy a home. The Help To Save Scheme has been described as a scheme that will assist working people who have a low level of income to develop their savings. Over a four-year period, savers will be able to deposit up to £50 a month and these savers may be eligible to receive £1,200 as a tax-free bonus.
The scheme is now set to begin in October of 2018, which is six months after the proposed launch date. This delay will allow HMRC additional time to test the scheme and ensure that it has been developed in the right manner A trial scheme is underway and it is believed that universal credit claimants will be invited to join the scheme as of April 2018.
The help-to-save scheme will start in October 2018, six months after its original launch date. This is to give HMRC more time to test and develop it.
The criteria set out by HMRC sees the Help To Save Scheme being open to UK residents who:
· Entitled to receive Working Tax Credit or Child Tax Credit payments
· Claim Universal Credit and have a household income of at least £542.88, as of their most recent monthly assessment period
The scheme is also available for people who live overseas if they meet one of the above criteria and are:
· A servant of the Crown, through either themselves or their partner
· A member of the British Armed Forces, through either themselves or their partner
Once a person has been confirmed as being eligible for this assistance, they can start to save money straight away, with all transactions being listed in an online account. After a period of two years, savers will receive a 50% bonus based in the highest balance they managed to obtain. Anyone who saves the maximum amount will receive a bonus of £600 for this period. There will then be another two-year savings period, and again, anyone who saves the maximum amount of money each month will receive a bonus of £600.
Over the four-year period, people who save the maximum amount of £2,400 will be entitled to a bonus of £1,200 from the scheme. It is possible for money paid into the account to be withdraw at any point, but this may negatively affect the bonus that the person can receive.
If you require any guidance in saving money with respect to buying property, make sure you contact Gareth James. We are always happy to meet with you and offer any assistance we can to help you get on to the property ladder.