First-time buyers gain cash help from government

Chancellor George Osborne used his final Budget Day speech on Wednesday to introduce a savings scheme that will reward first-time home buyers with a £50 bonus from the government for every £200 they put towards their property.

The Help to Buy ISA will be available through banks and building societies this autumn, with first-time buyers able to make an initial deposit of £1,000 when they open the account.

There will be no minimum monthly deposit, but individual savers will only be able to put away a maximum of £200 a month. The government has also capped the total bonus it pays at £3000.

First-time buyers in London will be allowed to put the bonus towards purchasing homes worth up to £450,000, but the ceiling will be £250,000 for the rest of the country, Osborne announced.

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