George Osborne’s scheme will allow first-time buyers to save into the ISA from autumn, in which the government will provide a £50 bonus for every £200 saved up to a maximum bonus of £3,000 on £12,000 of savings.
Matthew Graves added: “The most you can save in the scheme is £200 per month and therefore it will take until 2020 to save the maximum £12,000 and get the £3,000 government addition. Who knows how high house prices could have gone by then, so with a capped level of saving, it is unlikely that people will be able to save fast enough to keep up with average house prices.
“The Help to Buy ISA still falls under the current ISA rules – meaning an account holder cannot have more than one cash ISA per year. However, if two people are planning to buy a home together, they can have one Help to Buy ISA each – meaning they could receive a total of £6,000 in bonuses.”
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