Vernon Building Society launches cashback ISA for homebuyers
Stockport’s Vernon Building Society is the first in the UK to offer an extra bonus to first-time buyers of up to £1,000 on its Help to Buy: ISA.
Home buyers that save through a Help to Buy: ISA can benefit from a 25% boost to their savings from the Government – with an additional 10% bonus from the Vernon.
First-time buyers who hold a Help to Buy: ISA with the Vernon and who take their first mortgage with the society can receive up to a £4,000 bonus, made up of a maximum £3,000 Government bonus and an extra £1,000 from the Vernon, while also benefiting from the tax-free interest rate of 2.25%.
The scheme is being launched on April 1, 2017.
Ian Keeling, The Vernon Building Society’s Head of Sales and Marketing, said: “House prices continue to outstrip wage increases with the housing crisis showing no immediate sign of abating.
“Many young people still dream of owning their own home and the freedom associated with it.
“Our first-time buyer savings and mortgage products are exclusively available to local people and we hope our innovative take on the Help to Buy: ISA will make the journey onto the first rung of the housing ladder more achievable.”
Help to Buy: ISAs are designed to help first-time buyers save up a deposit for their home.
The Government will add 25% to savings via the scheme, up to a maximum of £3,000 on savings of £12,000.
The Vernon will then add a further 10% of the capital balance - up to £1,000 – if a mortgage is completed with the society.