Help To Buy Gone, Now What?

[Deleted User]

Hi,
Now that the help to buy scheme is no longer available to open, what is the next best thing? I’ve read about lifetime ISAs but only a few places are offering these and it’ll only be a matter of time before there closing aswell?
Thanks

Alistair31

Thegreatdom11 said:

and it’ll only be a matter of time before there closing aswell?
Thanks

How so ?

eskbanker

Lifetime ISA is currently the next best thing, in terms of a savings product offering government assistance with a first-time property purchase (plus retirement saving as an add-on to what HTB ISA entailed).

There are no published plans to withdraw the LISA scheme so there doesn't seem to be much point in speculating about if or when that'll happen.  Perhaps worth noting that the HTB ISA timetable gave a ten year period between closing the scheme to new applicants and existing holders redeeming their savings for a property purchase - there are no guarantees that the same would happen at the end of LISA but it would always be expected that there'd be some sort of transitional arrangements....

water4444

I consider the lifetime ISA to be better, if you are able to save the 4K a year and DO NOT need to access it anytime soon. I get a bonus of £1130ish every year for free!!!

I do expect it to be withdrawn at some point purely because the amount of banks taking up the scheme is low, but if you already have an account I doubt they will take it away.

Alexland

water4444 said:

I consider the lifetime ISA to be better, if you are able to save the 4K a year. I get a bonus of £1130ish every year for free!!!

I assume the additional £130 is the interest earned from your account balance rather than a bonus?

water4444

Alexland said:

water4444 said:

I consider the lifetime ISA to be better, if you are able to save the 4K a year. I get a bonus of £1130ish every year for free!!!

I assume the additional £130 is the interest earned from your account balance rather than a bonus?

Yes I have a cash Lifetime ISA, the £130 was indeed interest.

I am leaving it all there for at least five years and want to use it to buy a home.

MrMorgan

I recently just closed the useless help to buy ISA which in my opinion was a total flop and waste of time, opened a moneybox LISA - as others have said.. put £4K in.. and get £1K free - sounds like a good deal to me! 

eskbanker

MrMorgan said:

I recently just closed the useless help to buy ISA which in my opinion was a total flop and waste of time, opened a moneybox LISA - as others have said.. put £4K in.. and get £1K free - sounds like a good deal to me! 

LISA pays bonuses at exactly the same 25% rate that HTB does, albeit there are variances in scheme rules, such as contribution limits and payment scheduling, plus property price caps.  In some ways LISA is better, but in others HTB is, such as lack of withdrawal penalties - what's the basis of your negative opinion of HTB, as it doesn't help anybody much to say you think it's rubbish without explaining why?

MrMorgan

eskbanker said:

MrMorgan said:

I recently just closed the useless help to buy ISA which in my opinion was a total flop and waste of time, opened a moneybox LISA - as others have said.. put £4K in.. and get £1K free - sounds like a good deal to me! 

LISA pays bonuses at exactly the same 25% rate that HTB does, albeit there are variances in scheme rules, such as contribution limits and payment scheduling, plus property price caps.  In some ways LISA is better, but in others HTB is, such as lack of withdrawal penalties - what's the basis of your negative opinion of HTB, as it doesn't help anybody much to say you think it's rubbish without explaining why?

Fair comment, with HTB appart from the first month the max you can pay into it is £200 a month, so £2400 a year... LISA is £4K and you could just do that in one month if you could.. no penalty for that. for example
To get the max bonus.. it will take 5 years to max out (for max bonus), with LISA you get it per year and obviously can pay more in each year.. so it works out better