Money Saving Expert Martin Lewis advises first-time buyers to open Help To Buy Isa now
First-time buyers who are looking to put a deposit on their first property could benefit from Martin Lewis’ latest advice.
The 47-year-old, who founded Money Saving Expert, told first-time buyers to open an account now – even if they’re not buying a home yet.
This comes after a range of high-street banks offered the specialised savings account that sees the government top-up your cash by 25%.
They were launched at the end of 2015 to help first-time buyers onto the property ladder but are being dropped from November 30 in favour of the Lifetime Isa (LISA) instead.
“You need £1 in a Help To Buy Isa by November 30 or you lose the opportunity”
Which is why Martin has urged people to open an account now by putting in £1 and then adding money when they’re ready.
The government will still boost your savings when you buy your first home up until November 30, 2029.
The maximum you can open an account with is a £1,200 lump sum and you’re limited to putting in £200 a month.
The minimum you must have saved for the government bonus to kick in is £1,400, which will be boosted by £350.
You can have both Isas at the same time but you can only use the bonus from one of them towards buying a house.
And if you’re not planning on buying a property just yet, Martin claims it’s still worth opening a Help To Buy account.
He added: “They’re a great way to save for older children. If your kids are 16+ for a Help To Buy Isa or 18+ for a LISA, the bonus means these are a great place to give them more money to save in, if you have it.”
A Help To Buy scheme work in the same way as any other Isa account, so it’s a great chance to earn interest on cash even if you don’t end up using it.
- Martin Lewis
Source: Read Full Article