New deal for first time buyers offers deposit cash

The Halifax and Persimmon Homes have introduced a savings incentive to ensure first time buyers have a better chance of saving for a deposit on a home.

The lender and housebuilder have begun a ''double your deposit'' scheme, which encourages first time buyers to open a savings account with the bank, into which a buyer must add savings for a minimum of six months.

Once buyers are ready, if they choose to buy a new Persimmon home, they will be rewarded with a cash gift equal to the amount of cash in their Halifax savings, to act as a further deposit.

The scheme could turn a maximum £5,000 saved into a £10,000 deposit, forming a formidable part of a £100,000 flat, for instance.

However, with many first time buyers working hard to escape the rental market, they should not forget to invest in home insurance when they finally make a transaction.

Without either buildings insurance or contents insurance, the owner of a new home could have their finances destroyed in the event of a disaster, or theft, and so for buyers, insurance should be the first thing bought after purchasing the house.

06/08/2008 16:40:15