A new ISA for first time buyers will offer a government bonus when investors use their savings to purchase their first home. For every £200 that a first time buyer saves, there will be a £50 bonus payment up to a maximum of £3,000 on £12,000 of savings. The bonus will be available for purchases of homes of up to £450,000 in London and up to £250,000 elsewhere.
The bonus will only apply for home purchase. Savers will have access to their own money and will be able to withdraw funds from their account if they need them for any other purpose. The maximum initial deposit will be £1,000 and the maximum monthly saving thereafter will be £200.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.
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