The Help to buy ISA will be introduced by Autumn this year, available at bank and building societies. Each provider will be able to apply there own ISA stipulations e.i interest rate and withdrawal rules but normal transfer rules will be in place to ensure savers have the flexibility to transfer to accounts with better rates.
There will be a maximum monthly saving limit of £200 for every £200 paid in the Government will contribute £50, the top up will be capped at £3000 and tax free meaning the maximum about of savings from the buyer is £12,000. The ISA is available 4 years from the initial scheme starting, once the account is open there is no time limitation on how long a person can use the ISA or when they claim the contribution.
To ensure the Governments contribution is used correctly the funds will be released when the property has been purchased. The great thing is the ISA is available one per person not one per household and up to £1000 can be deposited into the account as the first payment. The property purchase cannot be for buy-to-let purposes, only for first time buyers who will be living in the property and their only residence. In London the the purchase value can be up to £450,000 other areas in the UK price must not exceed £250,000. The top up can be claimed at any time as long as there has been a minimum of £400 government contribution.
So first time buyers.....what are you waiting for!