Lifetime ISA or Help to buy ISA?

b_worrell

I’m looking for some advice on whether to switch to a help to buy ISA to a lifetime ISA. I currently have a help to buy ISA and thinking of switching to lifetime ISA because we are looking for a house above the price range of the help to buy ISA. My current help to buy ISA has an interest rate of 2.25% but can only save £1200 each year, whereas the lifetime ISA is looking at offering 1.25% and save £4000 each year. We are looking at buying in the next 2 years (fingers crossed). 

Any help or advice would be greatly appreciate.

eskbanker

If you're looking at properties above the HTB limit then this effectively trumps any other issues, in that you wouldn't be able to benefit from the bonus if staying with HTB, so shift over to LISA.  You don't say how much you've accumulated but could have up to £8K moved over by next April....

b_worrell

Thank you forgot advise! 

badger09

In addition to what eskbanker said, if you can afford it, there is nothing to stop you & your partner saving into both the HTB & LISA. Obviously, you'll only qualify for one Gov bonus each, but 2.25% is an excellent rate. (Are you sure its still that high?)