Q What is a Help to Buy ISA, can my son get one to help him buy his first house?

A The Chancellor announced a pleasant surprise on the first time house buyer market in the budget when he announced the Help to Buy ISA.If you are a first time buyer, you can save up to £200 per month towards your first home with a Help to Buy ISA and when you do so the government will boost your savings by a whopping 25%. That is a £50 bonus for every £200 you save. You can receive a bonus of up to £3,000.

Savers will be able to open a Help to Buy ISA for a 4-year period after the date the scheme formally opens. Once an account is opened there is no limit on how long a person can save into a Help to Buy ISA and no time limit on when they can use their government bonus.

The new help to buy ISA accounts will be available through banks and building societies from the Autumn of 2015 when you will be able to make an initial deposit of £1,000 when you open the account, in addition to the normal monthly savings of up to £200 per month.

You will be limited to one account per person rather than one per home, so those buying together can both receive a bonus.

You will need to be age 16 years and over and be a first time buyer purchasing in the UK. The minimum bonus size is £400 and a maximum bonus size is £3,000 per person towards the home purchase of up to £450,000 in London and up to £250,000 outside London.

Watch this space to consider if this will help you, get onto the housing ladder.

Warren Shute is a chartered financial planner