Lifetime ISA vs Help to Buy ISA
29/11/2019
3,764
3 min read
Lifetime ISA (LISA) vs Help to Buy ISA? Given that both of these ISA products can give you a Government bonus towards buying your first home, it's understandable that you'll want to work out which is best for your individual needs. We've therefore created a handy infographic below which summarises the main differences between the two products.
NB The Government's Help to Buy ISA scheme closes to new applicants latest Saturday 30 November 2019 with some schemes closing a day or so before that. If you are over 40 and wish to take advantage of a free Government bonus towards the purchase of your first property, you need to adhere to this deadline.
The main difference between the two is that the Help to Buy ISA's Government bonus (£3,000 maximum) can only be put towards buying your first home, whereas the Lifetime ISA's Government bonus (£32,000 maximum) can be put towards both buying a first home and towards pension savings.
SAM Conveyancing uncovered a considerable flaw in the Help to Buy ISA (click to find out more) - the Government deposit is not available for use at the point of exchange. The Lifetime ISA, which came out later than the Help to Buy ISA, corrected this issue.
That said, with the average of age of first time buyers rising, there are considerable numbers who are aged 40 and over and whereas the Help to Buy ISA is open to them (click here to view the full HTB ISA eligibility criteria), the Lifetime ISA is not.
Scroll down to view our infographic.
Click to read our articles one:
Lifetime ISA (LISA) vs. Help to Buy ISA compared
Lifetime ISA (LISA) | Help to Buy ISA | |
| What is the maximum you can save? | £128,000 (starting at 18 and finishing at 50 years old) | £12,000 |
| How much can you save per year? | £4,000 per year | £2,400 per year (£3,400 in year one) |
| What is the maximum bonus you can receive? | £32,000 (starting at 18 and finishing at 50 years old) | £3,000 |
| Can you put lump sums in? |
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| How much must be in the account to be eligible for a bonus? | £1 | £1,600 |
| When is the bonus paid? | Annually in the 2017/18 tax year, then monthly from April 2018 | On completion when you buy a home |
| Can you invest as well as save? |
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| What's the maximum property price? | £450,000 | £250,000 (£450,000 in London) |
| What is the earliest time when you can withdraw your savings and get your bonus? | After LISA has been opened for 12 months | Once you've saved £1,600+ |
| Who can open it? | Anyone aged 18-39 | Any first time buyer aged 16+ |
| Can I withdraw money if not buying a home? |
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| Is there a charge for withdrawing ISA savings? |
| No - you can withdraw your money at any time for any reason |
| Can you use the bonus to fund your deposit on exchange? |
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| How long does it take to draw down the bonus? | 30 days from conveyancer application | 14 days from conveyancer application |
*Fixed Fee – No Sale No Fee – On all Major Lender Panels
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