Karen Barrett comments on junior isas and home ownership measures announced in the 2013 budget

20 Mar 2013

On Junior ISA announcement:

“The Chancellor has announced a 12 week consultation to allow the transfer of Child Trust Funds to Junior ISAs and, if agreed, this will give a huge boost to parents saving for children.  According to the most recent figures available from HMRC, 71,000 Junior ISAs have been opened since its introduction in November 2011 but millions more children could be eligible for these accounts.   Those parents currently unable to transfer their Child Trust Funds or open a Junior ISA are beholden to low interest rates and unable to get the best rates for their money.  Our unbiased.co.uk/TaxCalc 2013 Tax Action research1 shows that as much as £1.3 million is set to go to waste this year simply by people not making the most of Junior ISAs and the interest rates currently available on these accounts.  The amount that can be subscribed into a Junior ISA is £3,600 (£3,720 in 2013/14) which can be divided any way between cash and stocks & shares.  The Government needs to ensure that the transfer process is straightforward and the route to saving for children remains clear and simple. Regularly investing in stocks and shares can really add up over time so seeking financial advice to ensure you are choosing the right option for you is a good idea.”

On ‘Help to Buy’ announcement:
“The Chancellor’s announcement of ‘Help to Buy’ is good news for home-buyers and not just those trying to get on to the ladder for the first time. From next month, home-buyers will be eligible for an equity loan worth up to 20 per cent of the value of a new build home, so anyone able to put down a five per cent deposit from their savings will be boosted by a further 20 per cent from the government, with the loan interest free for the first five years.  The other part to this is guaranteed mortgages, which will support homeowners who can afford mortgages but can't afford some of the hefty deposits currently required.  ‘Help to Buy’ will offer more flexibility for homeowners and first time buyers but it’s important that those looking to take up these schemes seek financial advice. An independent financial adviser or whole of market mortgage adviser can advise you on getting the best mortgage deal for your personal finances and make sure you are prepared for all the usual lending checks.  With competitive mortgage deals on the market right now homebuyers need to ensure they are getting the right mortgage deal for their financial circumstances and can comfortably support repayments later down the line.  To find a local professional adviser go to: www.unbiased.co.uk.” 

ENDS

Notes to editors:

  1. 2013 Tax Action research has been carried out by Opinium Research on behalf of unbiased.co.uk and TaxCalc 

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Category: News Tagged: Help to buy, ISAs, The Budget, mortgages


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