Martin Lewis Money Saving Expert: Best Help to Buy ISA deals revealed


Martin Lewis revealed his top pick of Help to Buy ISAs on This Morning yesterday.

The financial expert appeared on the ITV daytime programme to explain this sometimes complicated issue to the public.

He explained the difference between the Help to Buy ISA and the LISA.

The Help to Buy ISA will be phased out, but which is better for you? And what is the best Help to Buy ISA deal?

What is a Help to Buy ISA?

Martin told the public that the Help to Buy ISA came before the LISAs.

The current plan is that it will be phased out for new applications in December 2019.

It works in a similar way to the Lifetime ISA for first-time buyers, in that you also get an added 25 per cent bonus on top.

What is the difference between a Help to Buy ISA and the LISA?

Anyone aged over 16 can open Help to Buy ISAs, there’s no upper age cap.

You can put in £1,200 in the first month then after that, £200 a month, until you’ve got £12,000 in it. So the maximum bonus is smaller, up to £3,000.

You can only use it on a home up to £250,000 (£450,000 in London).

You can use this to buy a house once you’ve £1,600 in, which is just three months savings.

You can withdraw money anytime no penalty.

The top Help to Buy ISA is currently Barclays paying 2.58 per cent AER variable.

You can’t use the first time buyers bonus with both ISAs though, so you need to choose.

Yesterday Martin Lewis revealed the ISA which saves £4,000 tax free and you get £1,000 per year free. 

Which is better, a LISA or Help to Buy?

Martin said: “The LISA’s big advantage is you can put far more in, so you can get a bigger bonus.

“The Help to Buy ISA is more flexible, as you can use it quicker, and withdraw without penalty.

“If you’ll definitely buy a home, for less than the LISA maximum of £450,000, are aged 18 to 39, and you won’t do it within a year, go for a LISA as you will get a bigger bonus.

“If you are older, need to buy quickly or you’re not 100 per cent sure you’ll buy at all then it’s safer to stick with (or get) a Help to Buy ISA.”

For full details on how it works, including whether you’d be better off with a Help to Buy ISA, see Martin’s top ‘Lifetime ISA’ guide, but here’s a brief summary. 

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