'Scandal': Financial experts have slated the scheme [Image: Yui Mok/PA].

‘Scandal’: Financial experts have slated the scheme [Image: Yui Mok/PA].

Who could possibly have foreseen that any government ‘help to buy’ scheme was a rip-off?

Oh yes, that’s right – This Blog did.

Admittedly it was three years ago, with the current scheme’s forerunner – but I was right, wasn’t I?

The Government’s Help to Buy ISAs have been branded a “scandal” after experts warned up to 500,000 first time buyers could be left with an unexpected hole in their finances.

When former chancellor George Osborne launched the scheme last year, he said it would provide “direct government support to anyone saving for the deposit on their first home.”

However the Daily Telegraph reported warnings from financial experts that more than 500,000 unsuspecting savers cannot use a 25 per cent Government “bonus” towards the deposit.

The Treasury said it had always been clear that the bonus was only payable on completion of the house purchase and was designed solely to reduce the size of a buyer’s mortgage by boosting the amount of equity they could put in.

However Andrew Boast of SAM Conveyancing told the paper that the condition undermined the declared purpose of the scheme.

He said: “It is a scandal. The Government launched this scheme declaredly to help people save the large exchange deposit required to buy a home.

“But what unsuspecting first-time buyers are now horrified to discover is that under the scheme rules they cannot use the bonus as part of this deposit.”

Source: George Osborne’s Help to Buy Isa scheme branded a ‘scandal’ by financial experts over home deposit flaw | Politics | News | London Evening Standard

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