Help to Buy ISA
The 2015 budget saw the launch of this initiative to help first time buyers. Savings of up to £200pm will be topped up by the government by 25% with a cap of £3000. Further information is available on the Gov.UK website : Help to Buy: ISA – open yours today.
Deposits of up to £1200 can be made in the first month but they are then restricted to £200 in each calendar month. The 25% government bonus can be claimed only when you are buying a home. The bonus attached not only to the sums deposited but also to the interest earned. The bonus is subject to an overall cap of £3000.
When the time comes to buy your home, your solicitor has to apply online for the release of the funds with the government bonus.