A: The Government says it is committed to supporting people who aspire to become homeowners.
Recognising increased deposit requirements had left many hardworking households unable to get onto the property ladder in 2013 and ministers introduced the Help To Buy scheme.
The new Help To Buy ISA is, in many ways, like any other ISA – you can earn tax-free interest on any money you save there.
The big difference is that for every £1 you save the Government has pledged to give you an extra 25p as a help to get on the property ladder.
It’ll match that up to a maximum of £200 each month and up to a total of £12,000.
If you are able to save the maximum you’ll actually have £15,000 to play with.
Help To Buy ISAs should be available from the autumn and will stay open to first-time buyers for four years.
The good news is there are no time restrictions on how quickly you have to save and no time limit on when you can use the Government’s bonus.
Even better news is if you’re buying a home with someone else or more than one other person you can get all get individual ISAs and you’ll be able to open one with a deposit of up to £1,000.
That way ministers say first-time buyers can start saving now and still won’t lose out if they’ve got less than £1,000 together by then.
The Help To Buy ISA will only be available on homes worth up to £250,000 or £450,000 in London.
The exact rules have yet to be worked out but they will be for those aged over 16 and similar to normal savings ISAs currently on offer.