Help to Buy ISA

Martin mentioned tonight writing to the Chancellor re: limits on Lifetime ISA accounts. I am married and we both have Help to Buy accounts. Unfortunately the limit is 250k on the house you can buy with this account outside London and with the current market this may not feasible as house prices have rocketed! We don't want to miss the bonus and think it's too late to switch to Lifetime ISA as want to buy soon, how could we reach out to Martin to see if he could request the limits could at least be brought in line with the Lifetime ISA, please?

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  • eskbankereskbanker Forumite
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    deedsmcd said:
    how could we reach out to Martin to see if he could request the limits could at least be brought in line with the Lifetime ISA, please?
    Anyone seeking dialogue with Martin Lewis personally would be best advised to go via his social media profiles rather than posting on here.

    However, this subject has come up semi-regularly on here and realistically there is practically no chance that an old scheme (that hasn't been available to new customers for several years) will be adjusted to align with its replacement - the obvious time to do so would have been when the LISA was introduced, but there has been no sign of any appetite from the government, even in better economic times than now....
  • Riverside_AngRiverside_Ang Forumite
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    I have the same issue.  It's not an "old scheme" - it can be paid into until November 2029 and the bonus can be claimed until November 2030, so it is an active, current scheme  - the only "old" thing about it is that it is no longer available to new subscribers.
    The government should not introduce these enticing schemes if they are not going to maintain them in such a way that they remain a genuinely good deal in the spirit of what was offered & originally intended.  It seems too many young people could have been better off saving their money in a normal cash ISA with a higher interest rate, and many must feel as if they were mis-sold their ISAs.  That should not happen with a government-backed scheme!
    I hope MSE will challenge the government to increase the allowed property value on Help-to-Buy as well as LISAs...
  • eskbankereskbanker Forumite
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    I have the same issue.  It's not an "old scheme" - it can be paid into until November 2029 and the bonus can be claimed until November 2030, so it is an active, current scheme  - the only "old" thing about it is that it is no longer available to new subscribers.
    That's just semantics - it can be both an old scheme and an active current one!

    The point remains that it was launched in 2015 (with a finite lifespan to 2029/30 published from the start, together with the cessation of new accounts from 2019) and was largely superseded by the Lifetime ISA.

    When LISA was launched in 2017, there were transitional arrangements from HTB for the first year, so anyone who already had an HTB ISA at that stage was able to transfer all their money into the newer product, with its higher property value cap outside London, and obviously anyone starting to save from 2017 could use the LISA instead of HTB, so anyone still using a HTB ISA but wanting to buy a property above £250K has had plenty of opportunity to do something about it before now.

    I hope MSE will challenge the government to increase the allowed property value on Help-to-Buy as well as LISAs...
    https://www.moneysavingexpert.com/content/dam/mse/downloads/MSE-Locked-out-LISA-Jan23.pdf does indeed seek that, albeit in fairly lukewarm terms:

    A similar principle of uprating house prices in line with housing inflation could also be applied to the two thresholds set for Help to Buy ISAs.

    Uprating Help to Buy ISA limits should be proportionate, in line with the regional £250,000 limit and the £450,000 London threshold.

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