Government £3000 ISA handout popular with first time buyers saving for deposit
The new help to buy ISA launched at the end of 2015 is proving popular with first time buyers where the government will add up to £3000. With many products now launched some with up to 4% return this is a excellent vehicle to help save for a deposit on a property.
Up to £12,000 can be saved and the government will add 25% when the funds are used as a deposit on the purchase of a property. It can only be used by a first time buyer and not on a buy to let property. However you cannot have a help to buy ISA and cash ISA in the same year.
If two first time buyers are buying together they can each have their own ISA.