Skip to main content

Lifetime ISA: First time buyer? Missed out on a Help to Buy ISA? Meet LISA

The Help to Buy ISA offered an attractive 25 percent Government top up for those saving for their first home. The initiative was intended to help people buy their first homes, but unfortunately the deadline to apply has now passed. So if you’re looking to buy your first home, how does the Lifetime ISA (LISA) compare to the Help to Buy scheme?

What is Help to Buy?

Help to Buy began as a scheme back in 2013, with the aim of helping people onto the property ladder.

If you are part of the scheme, you can receive a government top-up of up to £3,000 towards your first home.

However, if you are planning on buying a house with another person – who has also saved in a Help to Buy ISA – you can combine your Government payouts to a maximum of £6,000.


  • Universal Credit & Child Benefit date changes: When to expect payment

With Help to Buy, the maximum you can put into an ISA is £12,000.

Upon opening a Help to Buy ISA, you could deposit up to £1,200, but from then on you can only add in £200 per month.

The deadline to register for Help to Buy was November 30.

But if you have already opened an account you can continue saving, but must claim your bonus by December 1, 2030.

What is LISA?

The Lifetime ISA (LISA) was launched in 2017.

Like the Help to Buy ISA, a LISA is a savings account, and both have their similarities.

However, one big distinction between the two is a LISA allows you to put more into savings.


Winter Fuel Payment: Deferring state pension? Deadline to be aware of [EXPLANER]
Retirement and me: Pensioners reveal their best financial move [INSIGHT]
State pension age: What is UK state pension age? Will age rise again? [ANALYSIS]


  • WARNING: Average family in Britain facing £5,000-a-YEAR drop in living

Director at Unity Mutual Steve Code told “Like the Help to Buy ISA, the Lifetime ISA offers a 25 percent bonus to savers.

“You need to be aged 18 to open a lifetime ISA and you can’t open one over the age of 39.

“However, you can put up to £4,000 a year into a lifetime ISA, while a Help to Buy ISA only allowed you to save £200 a month after the first month.

“This means savers are able to get hold of more government cash overall if using the Lifetime ISA (up to £32,000).”

What are the benefits and drawbacks of a LISA savings account?

Personal finance expert and channel director at, Deborah Vickers, spoke to about the pros and cons of the LISA scheme.

She said: “A LISA is a good option to save towards a pension for self employed workers who don’t receive any contributions from a company pension scheme.

“A drawback is you have to open a LISA before you are 40, although you can continue to save and keep the bonuses until you are 50.

“Another drawback is the penalty if you wish to make an early withdrawal.

“If you take out any money before you reach 60 and do not use it to buy a first home, you pay a 25 percent penalty.

“A positive is the potential to earn a total of £32,000 in bonuses if you pay in the maximum £128,000 over 32 years from the age of 18.

“Once you have a LISA you are free to transfer it to another provider.”

Source: Read Full Article


Popular posts from this blog

Google accused of creating 'creepy' spy tool to squelch worker dissent

Google workers are accusing the company of developing an internal surveillance tool that they believe will be used to monitor their attempts to organise protests and discuss labour rights.Earlier this month, employees said they discovered that a team within the company was creating the new tool for the custom Google Chrome browser installed on all workers' computers and used to search internal systems. The concerns were outlined in a memo written by a Google employee and reviewed by Bloomberg News, and by three Google employees who requested anonymity because they aren't authorised to talk to the press.The tool would automatically report staffers who create a calendar event with more than 10 rooms or 100 participants, according to the employee memo. The most likely explanation, the memo alleged, "is that this is an attempt of leadership to immediately learn about any workers organisation attempts."Google is using the new software tool to police its own workers amid r…

It will take 100 years for women to earn the same as men at this rate

The wage gap between men and women is 20%, meaning women get paid 80 cents to every $1 men earn, according to a recent study.The pay gap narrowed about 2% in the last ten years. If things don't improve, it will take a century for women to reach equal pay, according to Goldman Sachs.The firm said at least part of the unexplained gap could be due to the lack of women in highly-paid senior roles, despite being on average more educated than men.It could take a century for women to be paid as much as men, if things stay as they are now.The wage gap between men and women is 20%, meaning women get paid 80 cents for every $1 men earn. In the last ten years, the pay gap only narrowed about 2%, and if performance stays consist with the past decade's, it would take 100 years to reach equal pay, according to Goldman Sachs."The latest data show there's more work to do," said Amanda Hindlian, global COO of global investment research at Goldman Sachs in a note titled "Clos…

Vice President Pence pulls no punches against China, NBA or Nike

Pence: America's days of helping rebuild China 'are over' Vice President Mike Pence discusses international growth of wealth and President Trump's national security strategy.
Vice President Mike Pence lambasted China for human rights abuses Thursday and rebuked American businesses such as Nike and the NBA that  he says have fallen under the country's thumb.
Continue Reading Below
Pence also praised President Trump's policies regarding the world's second-largest economy, which he said will ultimately benefit both China and the U.S., throughout remarks at the Wilson Center in Washington, D.C.,

Chinese Vice Premier Liu He, accompanied by U.S. Trade Representative Robert Lighthizer, left, and Treasury Secretary Steven Mnuchin, greets the media before minister-level trade meetings in Washington on Oct. 10, 2019. (AP Photo/Jose Luis Magana)
"No president before has so vigorously advanced America's interests in our relationship with China," Pence sai…