Help to Buy ISAs
These have been popular with First Time Buyers for the past few years but you have only until 30 November 2019 to open an account.
For more information about Help to Buy ISAs, please read our Help to Buy ISAs Explained.
Lifetime ISAs can be used to help buy your first home or save for later life. So, if you are aged 18 or over but under 40 you are eligible to open a Lifetime ISA and so this is well worth considering.
More information can be found on the Government’s website (https://www.gov.uk/lifetime-isa) but a summary of the more relevant information is:
- You can save up to £4,000 tax-free each year up to and including the day before your 50th birthday
- The government will pay a 25% bonus on your contributions (savings) up to a maximum of £1,000 a year
- Your Lifetime ISA allowance forms part of your overall £20,000 annual ISA allowance.
- Any withdrawals within the first 12 months of your first payment into a Lifetime ISA will incur a 25% government withdrawal charge, which would mean you would get back less than you paid in. After that, you can withdraw money to buy your first home, but for any other withdrawals before the age of 60, the government withdrawal charge will apply (unless you are diagnosed with a terminal illness).