George Osborne launched the 'Help to Buy' ISA back in late-2015 as a way of helping struggling first-time buyers get that precious first foot onto the property ladder. They are still available today, but for a limited time only. Customers will not be able to open a new 'Help to Buy' ISA after the 30th November 2019.
The 'Lifetime' ISA then came along a few years later, in 2017, this time offering perks to those same struggling first-time buyers, plus the long-term minded financial 'planners' out there who don't need to access their ISA monies until age 60.
So, for now, people must choose whether it is the 'Help to Buy' or the 'Lifetime' ISA that is the best one for them. But how do you decide which is best? Here are some of the key factors to consider before you decide:
Help to Buy ISA
There are pros and cons to each product, so it really is a personal decision. Some prefer the 'Help to Buy' ISA because there are no penalties if you withdraw money. However, the bonus is bigger for the 'Lifetime' ISA and the value of the property that can be purchased is higher, so this may be a better option for some people. Again, there is a deadline for those looking to open a 'Help to Buy' ISA; the 30th November 2019, so if you think you might be interested, do not hang around.
In summary, if you are certain that you are using the money to buy a property and do not mind waiting a year to purchase your property, you should seriously consider the 'Lifetime' ISA.
This article was written by Rebecca Welthy, Independent Financial Advisor at Pinney Talfourd Wealth Management.
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