Should you transfer your Help to Buy ISA into a Lifetime ISA when they launch in April 2017? MoneySavingExpert founder and executive chair, Martin Lewis, analyses both accounts and answers this burning question.
Пікірлер: 147
@sherrifaowusu67434 жыл бұрын
I appreciate how transparent and charismatic Martin is when delivering these topics. My financial hero 😍
@harrybriggs92007 жыл бұрын
Good explanation Martin, very clear and concise and a lot easier than reading through tonnes of documents. Thanks!
@ItsTheMoneyGuy4 жыл бұрын
It's the easy talk that made me get into what I do now. Absolute ledge.
@aminamaradesa97784 жыл бұрын
The money box lifetime isa currently has the highest interest rate of 1.4% and you can manage your account on the app
@oasis4life0143 жыл бұрын
Moneybox and Martin have made me enjoy my life a lot more this past 2 years
@gemmajade817 жыл бұрын
This makes everything so clear, you're excellent! I rang Hargreaves and Lansdowne today and they said it'll be a £100 opening deposit for a lifetime ISA. Not too bad but not as good as £1 sadly!
@EuanCopeland5 жыл бұрын
This is a great way of explaining these both - I wish I had realised that Martin had done a video on the same topic I have just done a video on !! WHOOPS - cannot compete with a PRO :(
@techclub85286 жыл бұрын
the under £250,000 limit is a bit rubbish. where I live in Wiltshire all new builds that we looked at were above £250,000 for a small 3 bed house. the only thing lower was tiny 2 beds or coach houses or flats
@smartgorilla2 жыл бұрын
It's the don't be greedy isa
@shvlogs22615 жыл бұрын
I've got a help to buy isa and I spoke to a manager in NY bank and they said I would have to live in the property for 6- 12months before I could rent the property out and change lenders to a buy to let
@LevelUP845 жыл бұрын
I think I'll change my help to buy to a life time isa, I would prefer to be able to hand over my deposit at exchange of contract as oppose to completion of sale.
@sa45403 жыл бұрын
You’ve got to love this guy!
@Anteater233 жыл бұрын
So good at explaining
@Michael_Tierney7 жыл бұрын
Great video Martin, extremely clear and enthusiastic :) Which Lifetime ISA providers would you recommend? From what I've read so far only 3 firms have agreed to offer the Lifetime ISA (Hargreaves Lansdown, Nutmeg and The Share Centre) is it worth holding out or would you get started with saving a.s.a.p?
@mattlm647 жыл бұрын
I wish the government would just stop creating all these stupid complicated schemes. If they wanted to help savers then they should stop punishing savers by balancing the books and allowing the BoE to raise interest rates.
@t.tthegreat63195 жыл бұрын
Matthew unfortunately they wouldn’t do that because that’s what keeps the rich and elite stupidly loaded
@xHenry31104 жыл бұрын
@@t.tthegreat6319 I know this was 9 months ago but how does low interest rates enable that?
@arran.12893 жыл бұрын
@@xHenry3110 low interest rates = less people saving = more people spending their disposable income. Essentially, lining the pockets of the large corporations etc. Only a guess though, might not be what they mean.
@CosmicRainbow1087 жыл бұрын
At the end it says to open a LISA and then keep paying in to the HTB, I thought once you opened a new isa you cant pay in to the other isa accounts?
@oasis4life0143 жыл бұрын
You can’t but you can open one as long as you transfer it straight away
@stuartedwards55367 жыл бұрын
Great summary Martin, don't really watch MSE's content but the transfer rules were well explained both on the article and video.
@moneysavingexpert7 жыл бұрын
Thanks for the feedback Stuart! Very helpful.
@moray334 жыл бұрын
An important difference is that you can withdraw money from you Help to buy ISA at any time and use it for anything you want. On the other hand, if you want to withdraw money from a Lifetime ISA and it's not for buying your first home and you're younger than 60 they will charge you 25% of your withdrawal... Also, interests of Help to buy ISAs are higher.
@bradparsonsmusic4 жыл бұрын
Hi, thanks for all this. So I spoke with Barclays and they said I cannot have a Help To Buy ISA and a Life Time ISA at the same time, I explained your suggestion of opening one to get the clock ticking but they said I couldn't! So am I miss understanding this?
@katyward18954 жыл бұрын
I have a help to buy with Santander and a life time isa with Skipton
@charleybaker1237 жыл бұрын
Hi MSE, I have a H2B and could move it to a LISA, but this would happen after the April date mentioned. On the numbers and allocation side, what does this mean for the transition? Less bonus?
@charlottefountaine79107 жыл бұрын
'As long as you've got 16,000 in there you can use it towards the mortgage deposit straightaway' - is that correct? I thought if you only have 4,000 in there, but you were putting down the deposit and getting a mortgage you'd be able to use the Help to Buy ISA?
@avbuckingham5 жыл бұрын
Also Skipton seem to be only company that are offering a somewhat normal lifetime ISA that is described on internet, however this cannot be joint. Does that mean if I was to buy a house with someone in the future we couldnt join our lifetime ISAs together for a house deposit?? Thank you.
@EuanCopeland5 жыл бұрын
Hi Alice - you can combine two lifetime ISA with a partner - as long as you are both first-time buyers! Hope that helps - I just did a video on this very topic so been researching :) Hope this helps!
@JayWadeOnline7 жыл бұрын
Well I'll be transferring to LISA come 6th April!
@rquotidien96857 жыл бұрын
who have you gone with?
@missginawilliams69934 жыл бұрын
Hey can we get an update on your ISA choice?
@onlyme92543 жыл бұрын
U got a new girlfriend!? Lisa? 🤣
@danieldacosta8092 Жыл бұрын
What about if you are buying a shared ownership property over 250k but buying only a share?
@gavinHallx7 жыл бұрын
what are the risks of using a lifetime isa?
@danlightowler42594 жыл бұрын
@@Keenangoal Good point
@LeKretch3 жыл бұрын
Does the LISA bonus get paid annually then or is it paid on completion like the HTB ISA?
@oasis4life0143 жыл бұрын
Gets added to you balance monthly It’s does on Moneybox that’s all I use as they are still paying 1% interest which is the best at the moment
@LeKretch3 жыл бұрын
@@oasis4life014 went for Stocks and shares LISA with Hargreaves Lansdown. Cheers!
@danielbrunskill23614 жыл бұрын
I currently have a barclays help to buy isa. Am I best transferring this over to a Lisa ? I'm in my mid 20,s
@EuanCopeland4 жыл бұрын
are you going to buy in the next year? if not then the LISA is the best option - much better return on your savings :) also did a video on this if that helps - kzfaq.info/get/bejne/jM5yptRossvKYqs.html :)
@vinabb49994 жыл бұрын
Are lifetime ISAs and help to buy ISA only applicable when buying a new build, a brand new house or flat? Or can i use them to buy old properties as long as am a first time buyer?
@ToxicVaccines_HivHoax2 жыл бұрын
Are these rules still the same in December 2021 ?
@gabrielantonie70994 жыл бұрын
Interesting but I have one question. I cannot use the bonus from Help to Buy towards exchange but I can use it towards completion. But I already payed the entire deposit on exchange because it is required so there is nothing else to pay. Therefore how - please enlighten me - how am I allowed to use this bonus? I don’t understand and it’s not clear. My solicitor stated there is no way I can get cash back and I need to use the bonus towards completion but everything is payed already. Very confusing
@benmjr-95364 жыл бұрын
Guys where would be the best way to open a lifetime ISA?
@EuanCopeland4 жыл бұрын
I use the MoneyBox app its really easy to get started :) Did a vidoe on it - if that helps :) kzfaq.info/get/bejne/jM5yptRossvKYqs.html
@danielsloan207 жыл бұрын
Are the penalties for early withdrawn the same on both thought you might have mentioned that?
@moneysavingexpert7 жыл бұрын
Hi Daniel, there are no penalties for early withdrawal from a Help to Buy ISA (you just lose the bonus). For Lifetime ISAs, there is a penalty on top. More in our LISA guide: www.moneysavingexpert.com/savings/lifetime-ISAs Thanks, MSE Rosie
@Charlie_Claydon3 жыл бұрын
Can you have both lifetime and help to buy at the same time?
@EllsBells577 жыл бұрын
Excellent explanation, just a shame that no one seems to be offering a cash LISA. So far only Hargreaves Landsdown and Nutmeg are offering stocks and shares LISAs so I hope this changes soon!
@moneysavingexpert7 жыл бұрын
Hi Sally, Skipton Building Society has been the first provider to confirm it'll be offering a LISA, but only from June. More in our LISA guide: www.moneysavingexpert.com/savings/lifetime-ISAs Thanks, MSE Rosie
@vday163 жыл бұрын
I know this post is a bit old now but moneybox has a cash lifetime isa now. Im in the process of transferring my help to buy isa to it.
@oliviabray75035 жыл бұрын
With the Lifetime ISA, is it only for renting a house or actually buying it?
@calebbrookes78964 жыл бұрын
I put £1 in my lifetime ISA On February 2020. Does that mean I have to wait now until April 6 2021 to get the bonus or until February 2021?
@kelseymcgregor55394 жыл бұрын
Can you use this for a first time property if you build or purchase a property in the USA in the future if I’m from the UK?
@therobsterisalobster6 жыл бұрын
If I've already got more than £4k in a help to buy isa and will be buying a first house quite soon, is there any point in me transferring it into my Lifetime ISA? Because I will get a 25% bonus on the help to buy anyway, (which would equate to more than the £1k LISA bonus)? Thanks, Rob
@desmondalloffo79154 жыл бұрын
Poor people savings such a joke
@Mattsaeus4 жыл бұрын
Desmond Alloffo why
@camerondaly964 жыл бұрын
I have a question regarding interest rates. A help-to-buy ISA has an interest rate of 2.5%, whereas the best LISA rate, currently with Moneybox, is 1.4%. If I begin saving now, should I open a help-to-buy ISA to take advantage of the higher interest rates and then switch to a LISA if the rate at which I can save increases?
@luisalzuablanco82454 жыл бұрын
I went with the help to buy, if you are going to open one, open it now! They stop doing them at the end of the month
@katyward18954 жыл бұрын
I have done exactly what you are suggesting. I have a lifetime Isa that i try to put £200 in a month, then my help to buy I stick the mini of £20 a month and get the 2.5% interest rate
@avbuckingham5 жыл бұрын
Do you need to put the £1 on the first day of the new tax year or can you put it in at any point? I was thinking put £1 at beginning tax year 2019, then keep putting into HTB until beginning tax year 2020 and transfer it all over. However what if this is more than £4000 as there is only £4000 limit ? And i swear you cant have HTB and lifetime ISA at same time?? but on here he is saying you can
@AbdulAminGani4 жыл бұрын
Great video except it's missing the withdrawal penalties. Help to Buy ISA has no withdrawal penalty, LISA has a 6% withdrawal penalty before age 60 (you lose the 25% bonus with both of course).
@oliviamiller-davis46674 жыл бұрын
So if you use the LISA to buy a house before age 60,you lose the 25% and have to pay the 6%?
@user-lx1gn7yk4k Жыл бұрын
@@oliviamiller-davis4667 Late by 2 years 😅but if you withdraw to buy a house, that penalty doesn’t apply
@JamesPursehouse7 жыл бұрын
If I open a stocks and shares LISA now with £1 to "start the clock" can I switch to a cash LISA later in the year or will that restart the clock?
@luckyshaqqq28 күн бұрын
1. it sounds like both ISA and LISA are pointless if you have a house already. I would rather overpay the mortgage. 2. Do you fill your ISA yourself, or the employer can do it similar to the pension deduction? Not clear if the interest is tax free, of the 20k GROSS per year is tax free. 3. Who is managing the investment and paying fees on LISA, before you cash it in as a pension. 20 years of inflation does not justify 25% bonus on 4000£ 20 years ago. Thanks
@jasonswife0013 жыл бұрын
Can i have a help to buy isa and lifetime isa and pay in them both in the same year? I opened a help to buy for my daughter just before it closed. We don't have any plans for her to buy a house in the next couple of years. Are there any benefits and is it possible to have a help to buy and LIsa open at the same time and pay into them both in the same year? e.g could she pay £4000 in the LISA and £2000 in to the Help to buy? I know you can only get the bonus from 1 to use on the property so i'm thinking...... If she saved £4000 per year in the help to and then used that to buy her house eventually in say 5 years, the bonus would be higher than she could ever get in the help to buy. However, the interest rate on the help to buy is better than a current account or any saver at the moment. So, i'm thinking to continue to pay into the help to buy as well. BUT, would she loose all the interest that she has gained on the help to buy when she finally withdraws it after 5 years or in 2030 or is it just the gov bonus that she would loose? Thank you.
@troyfletcher19907 жыл бұрын
Hi, so if i was to open a life time isa now would i have to wait for 2 years before gaining the benefit?
@Danimaz32119963 жыл бұрын
But isn't all these schemes just a loan ? Like ots not a gift from them you have to repay them? Or they own equity in your house? Or ? I'm confused my girlfriend took one out thinking its just a gift bonus towards helping and I said to her im sure you will have to pay the money you get given from the government back
@ashleycusack18767 жыл бұрын
If you have a HtB ISA aren't you better opening a LISA for retirement and using the HtB to buy? Can you get both bonus' that way?
@moneysavingexpert7 жыл бұрын
Hi, you can use a LISA for both retirement and buying a first home. Or can also keep your H2B ISA open and use both. More info in our LISA guide www.moneysavingexpert.com/savings/lifetime-ISAs Thanks, MSE Rosie
@Audacity697 жыл бұрын
Can a parent open a either one of these for their children?
@F234634 жыл бұрын
Could you get either of these if you have gone bankrupt?
@GasManLS77 жыл бұрын
Am I right in thinking that if I have more than 4000 in my HTB ISA at the time I transfer, I would lose the bonus on everything above that? Would I be able to transfer in the full amount?
@moneysavingexpert7 жыл бұрын
Hi, full info on transferring a Help to Buy ISA into a Lifetime ISA is in our LISA guide, point 5. www.moneysavingexpert.com/savings/lifetime-ISAs Thaks, MSE Rosie
@spfrisby5 жыл бұрын
Call it a lifetime isa but isn’t lifetime 😳
@lilkeysy832 жыл бұрын
Slightly misleading, you can only transfer 4000 so if your h2b ISA is over the 4000 limit it will take 2 years to transfer the full amount if under 8000, just found out to my detriment
@TheRicksta876 жыл бұрын
Is this really the case, if I open a LISA I only have a year to transfer my Help to Buy ISA savings into it. Once that year has passed I can never transfer it over to it?
@EuanCopeland5 жыл бұрын
You can withdraw the Help to buy ISA with no penalty and then transfer the savings to a LISA and get the bonus!
@techclub85286 жыл бұрын
me and my girlfriend saved into a help to buy ISA Great untill we went to use it and due to our house being over £250,000 meant you we couldn't use it. I guess we should of read the all the details. Luckily for us they dropped the stamp duty for first time buyers which saved us nearly £4000
@kashifimran33474 жыл бұрын
*have
@theonlinegamer2967 жыл бұрын
Its a shame nobody will actually be offering the lifetime ISA :/
@moneysavingexpert7 жыл бұрын
Hi, a few providers will be offering a LISA, though it'll be slim pickings. Full info in our Lifetime ISA guide: www.moneysavingexpert.com/savings/lifetime-ISAs Thanks, MSE Rosie
@rossmaclean34054 жыл бұрын
So can you have both??
@nadiabrobbey45224 жыл бұрын
No
@craigpangan38847 жыл бұрын
Great Video, thanks for the info. You didn't mention interest rates. Which provides a higher interest rate?
@theonlinegamer2967 жыл бұрын
Not possible to say until banks create the accounts. That's if they actually offer accounts in the first place, which many will not
@moneysavingexpert7 жыл бұрын
Hi Craig, providers haven't released details of interest rates on offer yet, but we'll be sure to update our guide when they do: www.moneysavingexpert.com/savings/lifetime-ISAs Thanks, MSE Rosie
@Danimaz32119963 жыл бұрын
@@moneysavingexpert I have on question i cant seen to find the answer to help to buy isa the money u get given is it a loan, do you have to repay it in some way or is it a literally gift
@Alex-bf7mc5 жыл бұрын
so can you withdraw from the lifetime ISA once you've saved enough for a deposit?
@missginawilliams69934 жыл бұрын
Hey John, you wouldn't be able to withdraw yourself. Your solicitor would have to approve once you made a definite choice on a property
@11Alisher4 жыл бұрын
I think I will stick with help to buy ISA
@WillHartshorn6 жыл бұрын
Can you use your LISA for your house deposit as well as your mortgage? Cheers
@AfghanWithKnowledge5 жыл бұрын
Yes
@davidashcroft56027 жыл бұрын
so if I open a help to buy ISA tomorrow 21st June. and I open a lifetime ISA on the 25th June. I could take the £850 profit on 21st June 2018. and transfer money on 22nd June 2018 to my lifetime ISA. and pick up that extra grand.??????
@AsherB176 жыл бұрын
I have just swapped £2k from a HTB ISA into a LISA. £600 of this was paid before 6th April 2017. I then added another £2k to top up to my £4k LISA limit. Because the £600 was paid into the HTB before 6th April 2017. Does this mean i can actually put £4.6k into my LISA for this tax year? If anyone knows and can share with me, it will be greatly appreciated.
@legs30055 жыл бұрын
Hi Ashley, to confirm you cannot put more than £4k into a LISA in anyone tax year. If you're looking for extra help to top up your LISA you should check out www.homewards.io
@kcubed45 жыл бұрын
Can I have a help to buy ISA and a LISA? And benefit from the bonus of both of them when I buy a house?
@EuanCopeland5 жыл бұрын
Hi Katrina, you can have both but you can only get the bonus from one of the schemes! I just did a video about this topic which is more up-to-date and informative I hope!
@nicolawoods28865 жыл бұрын
Hi am 26 haven't started saving yet, I'm looking into a life time isa to buy a save for a house, are the risks worth it?
@legs30055 жыл бұрын
Hi Nicola, really depends on how likely you are to buy a home. If you take a Lifetime ISA out, but then decide not to buy a home and want to withdraw the money then you will be penalised i.e. less money than you put in. Otherwise, you have to keep it in until you're retired to not get a penalty. I wrote this blog that should help explain medium.com/homewards/saving-for-a-house-help-to-buy-isa-or-lifetime-isa-46dbdb6f0efe
@nicolawoods28865 жыл бұрын
Thank you that's really helpful advice
@gavinburnes63444 жыл бұрын
So confusing
@yingwang87434 жыл бұрын
Very clear
@jennashiels7 жыл бұрын
From Skipton Building Society's (the only provider for a cash LISA) website under 'Can I withdraw my money?' - 'From tax year 2018/2019, withdrawals or account closures will normally have a government charge of 25% of the amount withdrawn. Sections A and B in the Online Cash Lifetime ISA Key Features document which explain why you may get back less than you paid in and exceptions to the withdrawal charge.' 2 years of savings. £8000 topped up to £10,000 by gov, charged £2500 to withdraw.... so you get back less than you put in...
@rroorryyjj7 жыл бұрын
so... I'm a Brit but expect to buy my first home in Norway since my fiancé is Norwegian. Does that make this a waste of time for me?
@mrsroyle11686 жыл бұрын
Yes, these schemes are designed for the purchases of property only in the uk and not outside I'm afraid :)
@mrsroyle11686 жыл бұрын
However if your using the lifetime ISA for retirement purposes I think you can still benefit from that one even in Norway but confirm this with the provider.
@acharich4 жыл бұрын
0:46 - Hmm, are u allowed to open both..? 💭💭💭 - @Acharich
@willbamford94664 жыл бұрын
Acharich Speaks he’s saying you can transfer between the two so yes?
@thefinewineinvestor4 жыл бұрын
Yes, you can
@chessdominos4 жыл бұрын
I wander who come up with all this crazy rule !!! Why does LIFETIME ISA is not for over 40? Where the sender in that?
@Markjonathan7 жыл бұрын
Can a couple both come together on a mortgage and both use their bonuses?
@Markjonathan7 жыл бұрын
Yes you can, answered my own question
@moneysavingexpert7 жыл бұрын
YOU are the expert Mark!
@adamkhan44134 жыл бұрын
yes but Martin you was say a month back help to buy isa and now you saying both make your mind up what is best
4 жыл бұрын
This dude’s good 👍🏽
@7861hotcakes7 жыл бұрын
Can any body tell me what's best way to save for your retirement
@moneysavingexpert7 жыл бұрын
Hi there - Check out our guide for further help: www.moneysavingexpert.com/savings/discount-pensions
@benaspin90727 жыл бұрын
Are all the banks rolling out the Lisa at the same time??
@moneysavingexpert7 жыл бұрын
Hi Ben, only a handful of providers have confirmed they'll be offering a LISA, and will be launching at different times. More in our guide: www.moneysavingexpert.com/savings/lifetime-ISAs Thanks, MSE Rosie
@MatLadley7 жыл бұрын
Has it been explained how the 25% "bonus" for first time buyers will work exactly - ie is it like an APR interest rate on the contributions? If for example, I open a lifetime isa in April 2017 with just £1, and then in March 2018 I deposit £3999 AND transfer say £2000 from a previously opened help to buy isa, would I get £1500 added to my lifetime isa as a bonus in April 2018 (25% of the total £6000) or just a fraction of this?
@moneysavingexpert7 жыл бұрын
Hi Mat - It doesn’t work like interest, really, in that it doesn’t matter when in the first year you put your £4,000 in. Provided it’s in the account by 5 April 2018, you’ll get the full £1,000 bonus. In the scenario you describe, provided all the Help to Buy ISA cash was contributed to the H2B ISA before 6 April 2017 (if after, it affects how much you can put in the LISA), you’d get the bonus on the whole lot - so £1,500. Hope it helps!
@jadeyfamous7 жыл бұрын
I'm sure Martin hasn't got to worry about these kind of things like the rest of us 😔
@marcwareham93515 жыл бұрын
Don’t invest in anything with less than a net return of 2.5%! If you do you’re not even beating inflation.
@EuanCopeland5 жыл бұрын
Both schemes have a 25% net return!!
@karinamanning95925 жыл бұрын
can i rent home with LISA?
@Sam-ue4rv5 жыл бұрын
No
@cloroxbleach1754 жыл бұрын
ISA JAR JAR BINKS
@Cazziey3 жыл бұрын
I’m sad I didn’t get to open a help to buy isa
@markgoddard25604 жыл бұрын
Don’t whatever you do give your money to a bank now. Buy a bit of gold. The banks are crashing right now.
@markgoddard25604 жыл бұрын
Blackman and Robin . Yes of course! And a financier.
@J2764 жыл бұрын
I'm an idiot because I put £20 in a help to buy ISA.
@user-yo7lx8cc4r4 жыл бұрын
PINK why??
@J2764 жыл бұрын
@@user-yo7lx8cc4r Because I had a low income and I thought it would be a good idea to save some money up.
@J2764 жыл бұрын
@@user-yo7lx8cc4r is it really bad?
@user-yo7lx8cc4r4 жыл бұрын
PINK why is saving money not good??
@J2764 жыл бұрын
@@user-yo7lx8cc4r I mean is it really bad if I put a really small amount of money per month into a help to buy ISA?
@anandjlp99284 жыл бұрын
Where is your girlfriend sir (made for each other)
@Laura-ki4wf Жыл бұрын
She be my help for you people with special needs adls to get the home in norfolk with is the help to buy to are you on home
@ynfedsvotnfgd23403 жыл бұрын
The staking taurus intringuingly roll because motion preliminarily add beyond a bad millimeter. picayune, typical spring
@Charlie_Claydon3 жыл бұрын
Can you have both lifetime and help to buy at the same time?