The latest figures show house prices are falling sharply, yet the deposits required by banks are still out of reach for many first time buyers. That is why Simplyhealth helps its employees, by matching the money that employees save for their first home. The First Home Scheme is available to any employee who does not own their own home and is not a member of the company pension scheme.
Helen Dickinson at Simplyhealth says: "Times are tough for first time buyers, as the amount they need for a deposit is increasing all the time. Although house prices are falling, the deposit needed for an average starter home is now £37,000, which is just impossible for most first time buyers to save on their own. Our First Home Scheme offers an alternative for employees who have chosen to save for their first home, before they join the company pension scheme. It makes a real difference to those who are committed to saving for their first home."
Employees choose to save 3%, 4%, 5% or 6% of their net monthly pay and the employer matches it. The company contribution is retained within a separate account until the employee is ready to buy their first home. The total amount is then paid through payroll in one lump sum, less tax and national insurance. The insurer is helping 23 employees save for their first home.
It also helps graduate employees to pay off their student loan quicker, by matching their repayments through payroll.