First time buyers can boost their savings by 25% if they save into a Help to Buy ISA. For every £200 saved, first time buyers receive a government bonus of £50. The minimum bonus is £400 and the maximum bonus £3,000, so there must be at least £1,600 saved before the bonus can be claimed.
Help to Buy ISAs are available from a range of banks, building societies and credit unions. To kick start the account, £1,200 can be deposited in the first month and after that up to £200 per month.
Help to Buy ISAs are available to each first time buyer so those buying with their partner, for example, could receive a bonus of up to £6,000 towards their first home.
The bonus is transferred to the buyer’s conveyancer and is added to the money being put towards the first home (it cannot be used until the day of completion, so you cannot put it towards the deposit payable on exchange of contracts or legal fees etc.).