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14th July 2023

Save to Buy Scheme for Housing in the UK

The Save to Buy Scheme is a government-backed scheme to assist first-time homebuyers save for a deposit on a house. Money saved with Save to Buy can be placed into an Individual Savings Account (ISA), with a 25% bonus added when buying property. This is also know as the Help to buy ISA.


How the Save to Buy Scheme Works

Save to Buy ISAs are intended for first-time buyers under 40 who plan on becoming homeowners within 5 years, who are saving at least PS200 per month towards buying their home and receiving up to PS3,000 from the government in bonuses when purchasing it.

Save to Buy ISA funds can be used to purchase either a new-build home or an existing property valued below PS250,000 (or PS450,000 in London) that meets certain criteria, and with at least 75% coverage by your mortgage provider.


Eligibility requirements for the Save to Buy Scheme

To qualify for the Save to Buy scheme, you must fulfill several criteria. These include:


First time buyers aged 40 or under. Household income must not exceed £90,000. They cannot already own property.

How to Apply for the Save to Buy Scheme


To participate in the Save to Buy scheme, it is necessary to open a Save to Buy Individual Savings Account (ISA). You can do this through different banks and building societies and start saving immediately! Once an ISA has been opened, saving money becomes even easier!


When the time comes for you to purchase your home, you must apply for a mortgage loan and present proof of savings from your Save to Buy ISA to your lender. They will then add the government bonus of 25% onto these savings.


Advantages of the Save to Buy Scheme


Save to Buy offers numerous advantages to first-time home buyers, including:


The Save to Buy Scheme’s 25% bonus can help you save for a deposit more quickly, as long as it applies to new-build homes or existing properties, first-time buyers under 40, or those living with limited mobility. But its limitations should also be taken into consideration before using this tool to save.


Save to Buy schemes can have some drawbacks, including


Maximum bonus available is £3,000; 75% mortgage coverage of purchase price necessary to receive it; but this program may not be open to first-time homebuyers.


The Save to Buy scheme is a government-backed scheme that can assist first-time home buyers save for deposits on homes. While there are some advantages associated with Save to Buy schemes, as a first-time buyer if considering its use, it’s important that carefully consider both pros and cons before making your decision.


Help to Buy Isa has now closed to new applicants; however, savers with existing accounts may use them until December 2030 and continue receiving the 25% bonus.



The information in this article is drawn from official government guidance related to the Save to Buy scheme, and as of July 2023 is accurate and up-to-date.



The author has considerable experience writing about financial topics. Additionally, they conducted extensive research on the Save to Buy scheme and have included information from multiple sources in this article.



This information in this article has been checked against government guidance and other sources to ensure its accuracy, and additional links have been included so readers may gain more information from other resources.



This information in this article is current as of July 2023 and has been thoroughly checked for accuracy by its author, with additional links provided where readers may find more resources to explore further.