Right to Buy ISAs e...
 

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[Closed] Right to Buy ISAs ending soon

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Right to buy ISAs will no longer be available from 30th Nov 2019 (but you can still pay into one for the next ten years).

If you are saving for a house or have children 16+ who may want to save for a house then it may be worth looking into starting one now.


 
Posted : 18/09/2019 7:41 am
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My ridiculously financially aware 16 year old took one out as soon as he could, looks a great idea


 
Posted : 18/09/2019 9:00 am
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OP means 'Help to Buy' I think.

Anyway, yeah they're great. If you think you might be buying a house at some point, get one now.

After too many years of renting (long sad story) we're finally going to be buying our first place in the next few months. The interest rate isn't great due to low base rates, but we'll have about £3k of 'free' money towards out deposit.


 
Posted : 18/09/2019 9:19 am
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Oops, yes help to buy!!

My 18 yr old spotted the scheme was ending and opened one which resulted in my 16 yr old doing the same!

Looks like a great scheme and would be a shame to miss out if you are looking to buy in the future.


 
Posted : 18/09/2019 10:22 am
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Both our girls have them, cant see a reason not to have one unless you don't qualify


 
Posted : 18/09/2019 10:59 am
 Aidy
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Isn't this effectively superceded by the lifetime ISA? Which seems like a better deal - can put money in faster, and doesn't cap out.


 
Posted : 18/09/2019 11:21 am
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Not quite. Same benefit, but different limits on when you can take the money out without a penalty


 
Posted : 18/09/2019 11:23 am
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Lifetime ISA can be used for the exchange deposit whereas H2B can’t.

Think I’d be looking more at a lifetime ISA but there are pros and cons with both.


 
Posted : 18/09/2019 1:35 pm
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Thanks - 4 out of our 5 kids have got one, time to sign the baby of the family up.


 
Posted : 18/09/2019 1:50 pm
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Will be looking into this in more detail at the weekend, but as a quick q does it make more sense to use one of these or the lifetime ISA to put some money aside with the intention of buying a house in the next few years? Hopefully 5 at most.

Currently using bank savings account which has good rates for low amounts but will need to move it to something else soon.


 
Posted : 18/09/2019 3:07 pm
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HTB has the advantage of meaning you can get 25%bonus within 3 months, if you are on the verge of buying. But after the account opening £1000, you are limited to £200pcm additions, so it takes roughly five years to get to £12k and then be able to get the maximum bonus.

Lifetime lets you deposit £4k per year, but you need to wait 12 months to get your first 25% bonus. There's also financial penalties for withdrawing money for anything but your first home, unless you have reached the age of 60+ iirc.


 
Posted : 18/09/2019 3:49 pm
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HTB has the advantage of meaning you can get 25%bonus within 3 months, if you are on the verge of buying. But after the account opening £1000, you are limited to £200pcm additions, so it takes roughly five years to get to £12k and then be able to get the maximum bonus.

It's worth adding that if you're a couple you can have one each and claim bonus on both.


 
Posted : 18/09/2019 3:51 pm
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True, but even as a couple of first time buyers, HTB limits you to £6k of bonus, if you both get £12k in your accounts.

I can't recall the exact figure, but I thought the maximum bonus for Lifetime was much higher. Plus you both can have an account if both First time buyers.


 
Posted : 18/09/2019 3:58 pm
 Aidy
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I think if you're not going to buy a house within 12 months, and you're definitely intending on buying a house (or otherwise are happy to leave the money alone until 60), then a lifetime ISA is the right choice.


 
Posted : 18/09/2019 3:59 pm
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Lifetime ISA is also limited to age 40 and below, H2B is not.

Have had a H2B ISA for a while now and the other benefit has been the above-market interest rates (currently 2.25%).


 
Posted : 18/09/2019 5:14 pm

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