Save, make, understand money

First Time Buyer

Mortgage lender offers Help to Buy ISA customers £1,000 bonus

Paloma Kubiak
Written By:
Paloma Kubiak

Vernon Building Society is offering Help to Buy ISA customers a bonus of up to £1,000 but you have to take out a mortgage with the mutual society and live locally to qualify.

Under the Help to Buy ISA scheme, the government will top up your savings with a 25% bonus, up to a maximum of £3,000 on savings of £12,000. The new deal will see the Stockport-based building society add a further 10% of the capital balance – up to £1,000 – when a mortgage is completed with the society.

The deal, which is open to new and existing Help to Buy ISA customers, launches on 1 April.

The Vernon Help to Buy ISA currently pays 2.10% but from 1 April, the rate will increase to 2.25%.

The Vernon’s savings products are only available to people living within a 25-mile radius of Stockport.

Savers with a Help to Buy ISA can deposit a maximum of £1,200 in the first month and £200 a month thereafter up to £12,000. The money must be used to purchase a property worth under £250,000 or under £450,000 in London.

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.”