Santander and Barclays reveal help-to-buy Isa rates

From today, prospective first-time home buyers can open a Help to Buy Isa, with interest rates of up to 4% available.

First time buyers must take out a residential mortgage.

Here is everything you need to know about the Help to Buy ISAs from Vicky Shaw, Press Association's Personal Finance Correspondent. But how will they work?

What banks and building societies are offering Help to Buy Isas?

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Under the scheme, the Government will also make contributions of 25% up to £3,000 per person when they buy their first home. To receive that, they will need to have saved £12,000.

And Londoners will be the real losers, with the only properties under £450,000 in 2020 set to be on the outskirts - Redbridge, in Zone 4, and others all in Zone 5 and 6. It must not be bought as a buy-to-let property. First-time buyers of any age can buy a home with a deposit as low as 5 per cent, and can borrow up to 40 per cent of the property's value as an initially interest-free loan from the government.

If I save into one of these accounts, when will the Government bonus be added?

No, but you can put more than one Government bonus towards the home you are buying.

Couples can open individual accounts, meaning they could potentially claim £6,000 collectively from the Government. "It's another exciting opportunity to help more people get on to the housing ladder".

Only one at any one time.

This is not necessarily the case as at least one provider, Nationwide building society, will allow you to have both within the same Isa wrapper as long as your total savings do not exceed the annual tax-free savings limit of £15,240.

You do not have to put away the full £200 every month.

How long will it take to get the maximum £3,000 amount?

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Yes. The Government bonus will be based on the amount in your account when you close it, including interest. So far, only Nationwide and Aldermore are letting existing Isa customers also contribute to a Help to Buy Isa in the same tax year.

You will be able to open a Help to Buy Isa until November 30 2019.

According to the scheme rules, savers can deposit up to £1,200 within the first calendar month of opening an account, and then up to £200 a month after that.

You can open your account any time within four years of 1 December 2015 - the maximum term you can save for is four years and you must claim your bonus by 2030.

What if my house purchase falls through?

Lynnette continues: "Under the current Help to Buy scheme first time buyers who are saving for their first home may only need to save a five per cent deposit". Your solicitor or conveyancer will return your bonus to the Government and give you a document confirming the sale did not complete.

Out of the banks and building societies that have so far declared their hand Halifax is the market leader, by quite a distance.

Savers have the option of paying in a one-off lump sum of £1,000 to get the account under way. It does not have to be a Help Buy mortgage, but it can be. As a final boost to your chances, it may be worth seeking independent advice from an IFA or independent mortgage adviser, who can find you the very best mortgage deals from the whole of the market.