There are two government ISA schemes for first time buyers and both pay government bonuses on top of the tax-free interest. While you can have both accounts (if you meet the criteria), you can only benefit from the bonus on one of them to buy your first home. So it makes sense to compare the two before deciding which one might be best for you. Tax rule may change in future.
What’s a Help to Buy ISA?
As the name suggests, the Help to Buy ISA is specifically for people saving for a deposit on their first home. The Help to Buy ISA scheme is scheduled to end on 30 November 2019; however you can still claim the government bonus and save into a Help to Buy ISA until December 2030.
What’s a Lifetime ISA?
Introduced in April 2017, the Lifetime ISA (LISA) is aimed at people either saving to buy their first home and/or for their retirement. Ours was the first Cash Lifetime ISA available to savers.
*Any withdrawals within the first 12 months of your first payment into a Lifetime ISA will incur a 25% government withdrawal charge, which would mean you would get back less than you paid in. After that, you can withdraw money to buy your first home, but for any other withdrawals before the age of 60, the government withdrawal charge will apply (unless you are diagnosed with a terminal illness).
Transferring your Help to Buy ISA to our Lifetime Cash ISA
While we don’t offer Help to Buy ISAs, we can help you transfer yours to our LISA, if you decide that this is a better option for you.
Any transfer from a Help to Buy ISA will count towards your current year's LISA allowance of £4000.
Plus there is an exclusive offer of £250 cashback for any of our LISA customers who go on to take out a mortgage with us. Please see the terms and conditions below.
*£250 Cashback mortgage terms and conditions
Subject to our normal affordability assessment and lending criteria at the time, Skipton Lifetime ISA customers who are buying their first home with a Skipton mortgage will be eligible for £250 cashback following completion of their mortgage. This offer is only valid for mortgages completing from 6 April 2018 to 30 June 2027. Cashback will be paid for new mortgages where at least one of the applicants is a Skipton Lifetime ISA customer buying their first home. If the mortgage is in joint names and with another Skipton Lifetime ISA holder, only one cashback amount will be paid. Cashback will only be available once.
Security is required for any loan.