Full help to buy ISA

jcrg1796

I have filled my help to buy ISA and have been thinking about what to do next. Was thinking about a lifetime isa but I'm aware you can't get the bonus on both so would have to wait min 4 years until the bonus on the lisa was larger. Not sure about stocks and shares isa at the moment given current uncertainty...Has anyone else been in this position? Is the LISA worth going for? Not sure restricted access with lisa

eskbanker

There comes a point where people need to make a decision about whether HTB or LISA is better for their own individual circumstances, and factors will include when they're likely to buy their first property, whether it'll be within the HTB scheme limits, how much they can save in total, etc, so obviously there's no one-size-fits-all answer and you'll need to consider what your plans are likely to be....

md258

If you're buying before April 2023, the bonus from the HTB ISA will be larger, so you'd use that and not be able to take anything out of the LISA (without a penalty), so there's no point with a LISA.

If you're buying after this date, it may make sense to use the LISA if
* you will definitely buy a property
* the property will be under the £450k limit (or whatever it is changed to in the future)
* you can fill the LISA every year
* you believe HTB ISA interest rates will fall considerably over the next few years as they are not available to new customers

One thing to consider is whether you may end up buying a bigger property with a partner. If my wife had gone for a LISA, we wouldn't be able to use that towards a family home purchase as even a 2 bed house is more than £450k here. A HTB ISA gives you the flexibility of being able to use it for a more expensive property (but with no bonus) if your circumstances change