Help to Buy: ISA. Any good?

[Jockman]

Thinking of encouraging my youngest to open one of these as she is looking at home ownership upon her return from Dubai.

I've read up on the guidelines as December approaches but I'm not sure if I'm missing something here. Is a 25% return too good to be true?

[Phateuk]

From what I understand so far it's a no-brainer. I'm probably going to be opening one when they are available.

The only thing I'm currently not sure of is - will lenders only allow this to be used against certain mortgages or will this be totally independent of that? The cynic in me wonders if there's some sort of catch like it can only be used on "help to buy specific mortgages" or something whereby the rates/fees are higher? (hopefully I'm wrong here)

[Jockman]

It's a fair point. Especially if, as many commentators suggest, the savings interest rates will be higher than cash isas as lenders try to cross sell to isa holders.

I suppose a competitive marketplace should sort this out but I hark back to the assurance? isas which were only adopted by a few lenders before their inevitable demise. I'm hoping this won't be the case here.