So the Help to Buy ISA is promoted on the basis that you save up most of your deposit and the government will give you a 25% bonus on the money to take you the last bit of the way or boost it further.
I've just read an article saying that the bonus cannot be used to boost the deposit. You have to have saved up the whole deposit. You then get the bonus when you close the sale and can use it for whatever you want - first few mortgage payments, extra costs, etc.
The article says this isn't widely understood even by the banks who are still selling these products on the former basis. Many people are planning their finances around having this bonus for the deposit and only finding out after getting the mortgage in principle, offering, etc that this isn't the case.
The Treasury has stated the scheme was designed this way to prevent people getting the bonus and then not closing. Surely there is a way to work it such that the government guarantees that someone's deposit will be X amount (savings + bonus) but doesn't actually pay the money until the sale closes?
AIBU to think this is wrong?