Home to Buy ISA vs Lifetime ISA

3
Posted 15th Nov
Hi all,

As you may know, the deadline for applying for a home to buy ISA ends at the end of November. My wife and I are wanting to begin to save to get on the property ladder, but I just can't work out which is the above ISA's will work best for us. Wondering if anyone was in a similar position, and could give some advice.

- We would probably be wanting to get a mortgage in the next 5 years (As need to save for a deposit)
- Once we put the money into savings, we will not want to take it out again, only for the purpose of buying a house
- We could both probably save up to £500 a month, so £1,000 in total
- Ideally we would like to not have to commit to putting in that much every month (I am thinking if one of us loses our jobs etc)
- We would like to get as much bonus from the government as possible, whilst it is being offered

- I suppose my only other concern is that both ISA's, as far as I know, only let you buy a house of up to £450,000 (In London). We live (currently rent) and work in London, and have 4 children. My worry is that we won't be able to buy a suitable house for that money. Is there any way around this? If we both have ISA's, can it be combined then £900,00 max. If not, is there a way you can sell the property, and then use the lump sum to put towards a bigger property?

Sorry for the long post, just a bit unsure of the best way around this. Many Thanks
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eslick15/11/2019 19:46

MSE has all the info …MSE has all the info https://www.moneysavingexpert.com/savings/help-to-buy-ISA/https://www.moneysavingexpert.com/savings/lifetime-isas/


Thank you for the link, I have given it a good read, although I am still a bit confused.
I have read quite a few times, that it might be best to open both ISA's, and then transfer the HOme to Buy one across to the Lifetetime one after one year. We will not be puttting in the maximum amount in month 1, so I do not know whether this will benefit us or not.

Also, my main concern lies within the max house price of £450,000. Is there any way around this, if 2 people are saving, would the price then increase to £900,000? Or is there a possibility that we could buy one for £450,000, and then sell it. I was reading that you can potentially rent it out, but only for a short while, say if you were leaving the coutry for a short amount of time.

Any help would be great, as the deadline is approaching, and I don't want to miss out.
I'm still trying to figure out the help to buy vs the lifetime/cash isas myself
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