Open H2B? £250k unrealistic?

JRB95

With all the warnings about H2B deadline, I was going to open one. However, the main issue I'm having is the £250k limit on the house buying. I live just outside London where any property under that limit is a tiny box room or run-down flat. When I do come to buy a property I'll be wanting a small family home which currently will be £380k+.

So is it worth me opening a H2B account or should I just open a LISA which has the £450k limit?

eskbanker

There's no harm in opening a HTB ISA if you're prepared to simply use it as a relatively generous savings account, without any expectation of being able to claim the 25% government bonus on it.

However, if you're going down the LISA route for the bonus, make sure that you fill it with £4K every tax year, even if this means taking money out of the HTB....

Rich2808

And there is always the possibility the Government could change the rules and increase the £250k limit outside London and the £450k limit in London before 2030 - particularly if prices rise. They might also do the same for the lifetime isa £450k limit.

It only requires them to change 4 numbers on page 8 and 30 of the scheme guidance - the guidance was amended for other reasons a year after the HTB isa was introduced.

All depends how much certain parties wish to attract young aspiring homeowners - and their parents - in London and the south east to vote for them!

Nothing really to lose by having both products and then take a view if/when you buy - you just need to invest £1 in a HTB isa by Saturday and it will earn 2.5% interest. By Sunday it will be too late!

https://www.helptobuy.gov.uk/documents/2015/12/scheme-rules.pdf/