First it was Halifax, then came Santander with a reduction in their hugely popular and competitive 4% Help to Buy ISAs. Just a handful of providers offered this competitive rate, including smaller providers Penrith Building Society and Cumberland Building Society, following a flurry of activity in the market since Help to Buy ISAs were launched last December.
Now however it looks like the tide has turned with all of the 4% rates either pulled or in the case of Penrith and Cumberland Building Society, restricted to local savers only. Great news for those living in those areas, but not for everyone else.
Tipton & Coseley Building Society was the most recent to restrict its Help to Buy ISA to local savers, paying 3%, which leaves Virgin and Buckinghamshire Building Society joint top, also paying 3% (but not restricted). Watch out for Buckinghamshire Building Society, as we're unsure how long they'll be able to hold this rate and it's possible they may be likely to be next to restrict the account to local savers only.
Whilst there are still some competitive rates to be had, the prospect of a 25% bonus from the government is still a great incentive to save, it's just a shame that providers are pulling rates and more providers aren't in on the act, given only 21 even offer a Help to Buy ISA for first time buyers.
Check out our Help to Buy ISA best buy tables for more details of the best rates.
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