Santander Help To Buy ISA Pros and Cons (1)
21 Jun, 2021

Santander Help To Buy ISA: Pros and Cons

Here’s something everyone who has availed of the scheme Santander Help To Buy ISA should know about. 

Aside from the announcement that all qualified account holders only have the next eight years to save up for their saving targets, let’s take a keen look at the salient terms and conditions of Santander Help To Buy ISA by assessing through the pros and cons of this scheme. 

First, it is important to look through the government’s goal on why it introduced this financial program to its people. Santander Help To Buy Isa’s primary objective is to assist families or individuals who are first-time buyers of real estate properties. 

The scheme is aimed to give financial aid so qualified account holders can buy the home of their choice.

Santander Help To Buy ISA Pros and Cons (1)

How Does Santander Help To Buy ISA Work? 

The financial program is like a savings account in banks with high interests and a government bonus but without the tax obligation. The primary requirement it asks from its account holders is regular savings of not more than £200 in the form of a contribution every month. 


What can account holders get from their Santander Help To Buy ISA accounts? If you are qualified, the scheme has three financial guarantees:

  • Interests earned are free of taxes
  • An additional £1, 200 on the first month of the account
  • A bonus not exceeding 25% of the total amount saved or a maximum amount of £3,000

Note that a qualified Santander Help To Buy ISA account can only claim the equivalent bonus at the end of the savings period or the moment account holders are ready to purchase the real estate homes of their choice.  Read more about Help To Buy ISA Santander: A Guide

The Pros 

First is the flexibility of the program upon its maturity. Account-holders are free to choose any property they want provided that such a house is within the soil of the United Kingdom. Moreover, the benefits of the Santander Help To Buy ISA program are the best among many other well-known savings plans. 

The option to switch accounts is also flexible. This is especially advantageous when the account holder’s current Santander Help To Buy ISA account is not earning the desired or ideal interests. 

What does this mean to account-holders? They can switch to a new account that earns better interest rates and still enjoys the benefits of the scheme. What the program will only require from its account holders is an official and valid ISA transfer. 

Moreover, the benefits of the Santander Help To Buy ISA program are the best among many other well-known savings plans. Account-holders cannot find any other financial program that offers high-interest rates, a bonus upon maturity, and all tax-free! Read more about The Pros And The Cons Of The Help To Buy ISA Barclays

The Cons 

There is no perfect scheme. No matter how good the Santander Help To Buy ISA may sound like, the scheme also has some drawbacks. Here’s a closer look at them.

The bonus amount of £3,000 sure does sound very enticing, but with the ceiling amount on the monthly contributions, account holders will take approximately 5 years of regularly saving the maximum amount of £200 to claim the government bonus. 

One of the primary qualifications is also too restrictive in the sense that it is only offered to first-time homebuyers, which means the account holder’s immediate family (i.e. parents or spouse) has not made any purchase of property under their names. There is also a cap value on the properties that one intends to buy. 

Account-holders can only purchase real estate homes that are priced between £250,00 and £450,000. This means one can only purchase real estate houses that are within the set price range but cannot save up for any property of their choice. 

If we go back to the primary goal of this scheme, which is to help first-time home-buying families and individuals, the  scheme of the government is still a good financial program. 

Account-holders can make a wise move by signing up for another savings scheme on offer in the market to patch the flaws of the government financial program.

Read more about Barclays help to buy ISA in our real estate blog.