Government deposit ISA

[lightcola]

I have been very VERY fortunate to have been given a sum of money by a relative which we want to use as a deposit for our first house. We are thinking about putting it into those ISAs the government have set up where they add 25%. We have worked out if we get one each the money should be in in 19 months and ready for us to use with the top up. Is this a good idea? Or is there a catch? My dad always told me if something seems too good to be true it probably is.

[ChessieFL]

Those new accounts aren't available yet.

[ChessieFL]

Sorry, pressed post too soon! They will be available from April 2017. The funds can only be used to buy a first house, so no good if you have owned a house before.

[ChessieFL]

Oh, and you can only put in £4000 per year. Therefore if your inheritance is more than £8000 (£4000 each) you will need to find another home for the rest.