Santander ups Help to Buy ISA rate to 4%

Santander has increased its Help to Buy ISA rate from between 1.5% and 2% to 4%.

Santander has increased its Help to Buy ISA rate from between 1.5% and 2% to 4%.

The 4% rate will be available to both new and existing customers and customers with an existing Help to Buy ISA will be able to transfer to the higher rate.

Miguel Sard (pictured), managing director of mortgages at Santander, said: “Santander is really pleased to increase our support for customers saving towards their most important purchase by offering a market-leading rate to help first time buyers in the UK onto the property ladder.

“Our new Help to Buy ISA offers the opportunity to build a tax-free savings pot and then benefit from a boost to those savings with the government bonus.”

The ISA enables a deposit of up to £1,200 in the first month and £200 per month after that.

Using the ISA first-time buyers can get from a 25% bonus, meaning a maximum savings pot of £12,000 will become £15,000.