HM Treasury
Several banks and building societies have already committed to offer the Help to Buy: ISA from 1 December
Barclays, Lloyds Banking Group, Nationwide, NatWest, Santander, and Virgin Money will be offering Help to Buy: ISAs from 1 December.
You will be able to put away up to 200 a month in the Help to Buy: ISA that the government will then top up by 25%, up to a maximum of 3,000.
In the first month youre also able to put away 1,200 - thats an extra 1,000 on top of the monthly maximum of 200.
You can put up to 200 away in your Help to Buy: ISA per calendar month
So, if you open your account on the 8 January with 1,200, you then wont be able to make a second deposit of up to 200 until the 1 February.
You can make as many deposits as you want during the month as long as it doesnt equal more than 200. You can also take money out of your account if you need it, but your monthly allowance for deposits wont change.
Your bonus has to be put towards your deposit for a home
You can only claim your bonus when you are buying a home and the money has to go towards the deposit, so you cant use it to pay your solicitors, estate agents fees or any other costs associated with buying a home.
The interest you earn on the money in your account will count towards your government bonus
Your government bonus will be calculated based on the amount of money you have in your account when you close it. This includes both the money you have put away, and any interest you have earned on that money. You can have more than 12,000 in your account, but, you wont receive a government bonus of more than 3,000.
When you are ready to purchase your first home your solicitor or conveyancer will apply for your bonus
When you find your home, your mortgage provider will ask you to hire a solicitor or conveyancer. They handle all of the legal aspects of buying your home.
When you are close to finishing your home purchase, you will need to ask your bank or building society to close your Help to Buy: ISA. Dont just withdraw all of your money - let your bank or building society know that you are closing your account and they will give you a closing letter. You will need to take this letter to your solicitor or conveyancer so that they can apply for your government bonus.
Your solicitor or conveyancer will then apply online for your government bonus to be transferred to them at a date of their choice.
You need to apply for your bonus within 12 months of closing your account
You shouldnt close your Help to Buy: ISA unless youre in the process of buying a home but if your home purchase doesnt go through after your solicitor or conveyancer has received your government bonus, you can re-open a Help to Buy: ISA.
Your solicitor or conveyancer will give you a document (called a purchase failure notification) confirming your home purchase did not complete. If you take this to a bank or building society, they will open an account for you. At this point, you will be able to deposit your money as a lump sum. So, if you closed your Help to Buy: ISA with 12,000 in it, you will be able to re-deposit 12,000.