Money Tips Daily By Charles Kelly, Former Ifa And Author Of Yes, Money Can Buy You Happiness.

A Help to Buy ISA is a government scheme helping you save for a mortgage deposit to buy your first home. You must be a first-time buyer to qualify and not own a property anywhere in the world. Savings are tax free just like with any ISA product, however, a Help to Buy ISA gives you the added bonus of getting government contributions. How does the Help to Buy ISA work? The government tops up your contributions by 25%, up to a maximum contribution limit of £12,000. In other words, for every £200 you save, the government will contribute £50. This means you can earn a maximum of £3,000 from the government. The minimum amount you need to save in order to qualify for a government bonus is £1,600 (which gives you a £400 bonus). 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. Remember, Help to Buy ISAs are available to each first-time buyer, not each home. So, if you’re buying a property with your partner, you’ll be able to get up to £6,00