Help to Buy ISAs closed – Other Alternatives?

The Government has recently closed the popular Help-to-Buy ISA on Saturday 30thNovember, which offered a good way to help first time buyers onto the property ladder.  This also offered a brilliant 25% boost from the Government on top of the contributions. So, people are asking, why did the Government decide to close it?

The Help-to-Buy has actually been replaced by the Lifetime ISA, otherwise known as the LISA. It was introduced in 2017, and will still help first time buyers onto the difficult property ladder. In fact, the LISA offers a bigger bonus and more flexibility:

  • You can open and contribute up to £4,000 a year;
  • Receive a 25% bonus from the Government worth up to £1,000 a year up until your 50thbirthday;
  • After the account has been open for 12 months, you can use the money towards a first home worth up to £450,000. However, other withdrawals will normally be subject to a 25% penalty.

The main difference is that the LISA offers a £1000 bonus every year until you are 50.  You also receive this bonus every month on top of what you have contributed.  However, the Help-to-Buy only permitted a bonus of £3000 in total, and you would receive this on completion of buying your first property.  This is a huge difference in price. 

So, if you did not pay £1 into Help-to-Buy ISA before the deadline, and you are panicking as to how you are going to find the deposit for a house, the LISA is a much better alternative.  Its flexibility means you can pay as little and as much as you choose every month.

How can we help you?

If you are a first-time buyer and are worried about the process of buying your first home, then GoodyBurrett have a fantastic property department to help with the buying process.  If you are interested, contact us at 01206 577676 or at [email protected]

For more information on help to buy ISA's

Contact GoodyBurrett on 01206 577676 or email [email protected]