Is Help to Buy ISA or Lifetime ISA best for savers?

September 11th 2019
By: Davis Tate
Is Help to Buy ISA or Lifetime ISA best for savers?

Getting on the property ladder is increasingly challenging for many, but Martin Lewis, money saving expert, offers advice on Help to Buy ISA vs Lifetime ISA for savers.

During an appearance on BBC Radio 5 Live, Martin Lewis gave his advice on this tricky subject.  Although he says the issue is ‘complicated’, he went on to give this advice – put a quid in both. He explained “Put a quid in the Help to Buy ISA because that closes on the 20th November and if you don’t have one open you can’t open one after that, but if you open one the facility lasts for 10 years.” He then goes on to say “Put a quid in the Lifetime ISA because you have to have a Lifetime ISA for a year before you can use it but just putting a quid in it starts off that years countdown so that you’ve got it open.”

Explaining what to do next, Martin said: “Then the question is - and it is quite a complicated one - if you are definitely going to buy a house then a Lifetime ISA is better because you can put more money into it and the 25 percent bonus they give you is better.

“If you are not definitely going to buy a house, a Help to Buy ISA is better because you can withdraw money from that not for a house penalty free.

“If you are going to buy a house worth over £250K and you are outside London, a Lifetime ISA is better because the cap on property size is £250K with a Help to Buy ISA except London, but it is £450K on the Lifetime ISA. It is quite a complicated one.”

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