The Help to Buy ISA vs Lifetime ISA – which should first-time buyers get?

MSE_Eesha · 1 April 2016 at 11:54AM

This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.

Read Martin's "The Help to Buy ISA vs Lifetime ISA – which should first-time buyers get?" Blog.

Please click 'post reply' to discuss below.

MonkeyMohi · 12 May 2016 at 9:55PM

Just wondered if I opened HTB ISA this year and transferred it to LISA, when I did then buy a property (after 2018), would I be eligible for the 1 years HTB bonus on purchase as well as any annual bonuses accumulated from the LISA?

nikkas · 21 January 2017 at 2:11PM

My daughter's looking at using Help to Buy plus a Help to Buy ISA but hadn't clocked the £250k limit and she is buying a £280k house to complete in May/June.
She's buying with a partner who also has an H2B ISA. Does that change anything limit wise with 2 people buying?
I can't really see the Gov fiddling with the H2B ISA in the Budget since the Lifetime ISA is the way forward but that surely means they'll miss out on any sort of bonus?

GS139 · 26 March 2017 at 2:15PM

Hello,

I am looking to buy my first home in the (relatively) near future - but I'm not entirely sure whether this will be in the next year, hence a little confusion as to whether to open a Lifetime ISA or stick with my current Help to Buy ISA.

The best solution seems to open a cash LISA with just £1 when it becomes available in April but to continue saving on a monthly basis in the HTB. If I buy within the next year, I can use the HTB bonus, if not I can transfer the money across to the LISA upon the end of the year. Question is - if I transfer the lump sum over at the end of the year, is it still eligible for the full bonus?

I.e. If I open the LISA with £1 on April 6 2017 (or whenever it is offered by the banks) and transfer the HTB balance (approx £6,500) on April 5 2018, do I earn the full 25% bonus on £6,501?

On top of this, if I am able to save more than the monthly £200 limit on HTB contributions, is a LISA the best place to put this? So I'd be saving in both HTB and LISA simultaneously. Again with the view to transfer HTB over at the end of the year if I haven't bought.

Thanks very much for your help!

jb2510 · 6 April 2017 at 11:07AM

I'm also interested in this.

Esp as the bank who you have a H2B ISA with have a reserved set of products which offer you a slightly better rate for using the scheme through them.

I'm also in the position where I'd like to save more than £200 a month allowed on the H2B ISA so is it possible to pay in a lump sum of £4k to a LISA and then use the H2B to save at least my £200 per month with the remainder topping up the LISA. Therefore when it comes to purchasing (after a year) I'd have the full bonus from the LISA, a H2B bonus and also access through the H2B rates?

The Help to Buy ISA vs Lifetime ISA – which should first-time buyers get?

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