The 2015 Budget delivered by the Chancellor of the Exchequer today saw the announcement of the Help to Buy ISA.
This new savings account scheme is aimed at first-time home buyers and will see the Government paying money into the account in the form of a 25% cash bonus.
So if you save up to £200 a month towards your first home with a Help to Buy ISA, the Government will boost your savings by 25% - a £50 bonus. You can receive a bonus of up to £3,000 down to a minimum of £400, and this will be paid when you buy your first home.
The new accounts will be available through banks and building societies from Autumn 2015 for four years, but once you have opened an account there's no limit on how you long you can save for.
Here are some of the other things you need to know:
- You can make an initial deposit of £1,000 when you open the account - in addition to normal monthly savings
- There is no minimum monthly deposit - but you can save up to £200 a month
- Accounts are limited to one per person rather than one per home - so those buying together can both receive a bonus
- Only available to individuals who are 16 and over
- The bonus is available to first time buyers purchasing UK properties
- The bonus will be available on home purchases of up to £450,000 in London and up to £250,000 outside London