With a new Help to Buy ISA, the government will top up your savings by 25%. So for every £200 you save, the government will contribute £50.
You can start off your ISA with an initial deposit of up to £1,000, which also qualifies for the 25% boost from the government.
Help to Buy ISAs are available to each first-time buyer, not each house, so if you’re buying a property with your partner, for example, you’ll be able to get up to £6,000 towards your deposit.
Your bonus will go straight to the mortgage lender. It doesn’t sit in your account, it earns no interest and you only get it if you buy a home.