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.

How does the Help to Buy: ISA work?

The Help to Buy: ISA is designed to reward people who are saving for their first home. So, if you’re saving towards your first home, opening a Help to Buy: ISA is a wise first step.

The benefits at a glance:

  • For every £200 you save, you’ll earn a £50 government bonus, up to a maximum £3,000;
  • The bonus is guaranteed by the government; and
  • The account is provided by Newcastle Building Society, the largest mutual based in the North East.

Good to know

  • Its 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 £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 recieve 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 government bonus, it will be added to the money you are putting towards your first home. 

The bonus cannot be used for the deposit on your first home due at the exchange of contracts, to pay for solicitor’s, 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

Newcastle
Help to Buy:ISA

Government
Bonus

After 1 year £2,400 £600
After 2 years £4,800 £1,200
After 3 years £7,200 £1,800
After 4 years £9,600 £2,400
After 5 years £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 which has been designed to be used alongside the Newcastle Help to Buy: ISA.

First Home Saver

The Newcastle First Home Saver rewards first time buyers by providing cashback when they take a mortgage out with the Newcastle.

The more that is saved in the Newcastle First Home Saver, the more cashback that can be earnt, up to a maximum of £1,000 if your mortgage with the Society is £200,000 or more. See the table below for further details.

Newcastle First Home Saver / ISA savings balance Newcastle Building Society mortgage loan amount Cash reward
£5,000 - £9,999.99 £75,000 + £500
£10,000+ £75,000 - £149,999.99 £500
£150,000 - £199,999.99 £750
£200,000+ £1,000