You are here: Home - Investing - Getting Started - News -

Lifetime Isa gaining ground on Help-to-Buy

0
Written by:
03/05/2019
The Lifetime Isa appears to be gaining ground on the Help-to-Buy Isa, with the latter about to be phased out. 

New figures from the Nottingham Building Society show the Lifetime ISA is up to seven times more popular than the Help-to-Buy ISA. The Government has previously confirmed it will go ahead with plans to stop accepting new applications for the Help-to-Buy ISA from 30 November this year.

Unlike Help-to-Buy, the Lifetime Isa can be invested in stocks and shares as well as cash and can be used for retirement and house purchases. The Lifetime Isa allows investment of up to £4,000 tax-free every year, with a 25% government bonus being paid annually until the account holder turns 50, when they will no longer be able to make deposits. The pot has to be used for a deposit on a first home or retirement, otherwise the government will claw back its contribution.

Jenna McKenzie Day, senior savings manager at The Nottingham said: “We’re not surprised by the statistics because we know LISA is a genuinely beneficial account that in many cases is helping people buy their first home sooner. A large majority of those opening a LISA with The Nottingham are first-time buyers planning to use the funds for their first home*. That means potential bonuses of up to £1,000 a year are available for every £4,000 saved.”

 “The UK is waking up to these benefits and with the Government still planning to pull the Help-to-Buy ISA in November this year, this will only gain momentum. Since the start of the year, we have seen over 7 times as many Lifetime ISAs opened compared to the Help-to-Buy ISA, so it’s clear that the LISA is primed to fill the gap that Help to Buy will leave when it’s stops in November.”

 

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Monzo and Nationwide win the current account switch battle

Monzo and Nationwide gained the greatest number of current account customers in the three months to September...
Monzo and Nationwide win the current account switch battle

Lloyds, Halifax and Bank of Scotland to hike overdraft rates to up to 50%

Lloyds Banking Group customers could be charged up to 50% for using their overdraft in the new tax year, the l...
Lloyds, Halifax and Bank of Scotland to hike overdraft rates to up to 50%

Santander mortgage customers warned about ‘cheaper’ standard variable rate

Newer Santander mortgage customers coming to the end of their fixed term this week will be moved on to a relat...
Santander mortgage customers warned about ‘cheaper’ standard variable rate

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Money Tips of the Week

  • Adult siblings who live together could be exempt from paying ‘unfair’ inheritance tax when transferring property af… https://t.co/PkE71sSbxP
  • RT @WhichPress: A third of people will pay too much tax due to confusion around self-assessment expenses - Read the full story from @WhichU
  • Major plan launched to transform how people engage with money and pensions - Your Money https://t.co/q0Hz7PwHkz by @yourmoneyuk

Read previous post:
Revealed: The UK’s most family-friendly city

If you are looking to buy a family home in a city with good schools, low crime rates, green space...

Close