Help to Buy ISAs

Help to Buy ISAs

High interest instant access ISA accounts which can help you to purchase your first property by accessing a 25% government bonus

Help to Buy ISA’s

Help to Buy ISA’s were withdrawn from December 2019.

Help to Buy ISA

Help to Buy ISA’s were a way of saving to get the deposit to buy your first home. You could earn interest on the money you deposited into the account and if you used the ISA for the deposit on a house the government would boost your savings by 25% contributing up to a maximum of £3,000 towards it. The most comparable product now available is the Lifetime ISA, details can be found below.

What is a Lifetime ISA?

Announced in the 2016 Budget report the Lifetime ISA is a new kind of Individual Savings Account, launched in April 2017. 

The lifetime ISA is designed to allow people aged between 18 and 40 year old to save for both the deposit on their first property as well as their retirement simultaneously.

In addition from being able to save in a tax advantageous wrapper if a saver withdraws the money contained in the account after their 60th birthday, or use to purchase their first property they will receive a 25% bonus on their savings from the government which essentially means they could benefit from an extra £1 for every £4 they contribute to the ISA.

Fair Investment

Lifetime ISA Rules

Lifetime ISAs will only be available to eligible savers aged between 18 and 40 and the maximum contribution a saver can make each year will be £4,000.

In order to receive the 25% government bonus savers have to use the money contained within the ISA either for the deposit on a property as a first time buyer or for withdraw it after their 60th birthday.

If using the money within the account to buy property then to receive the bonus it must be worth £450,000 or less.

The account holder must also be considered a first time buyer which means they have never owned any kind of property before, whether in the UK or elsewhere, they also must be intending to use the house as their residence so buy to lets or other kinds of investment will not be suitable.

As lifetime ISAs are designed for individual savers it is possible to benefit from two if buying a property with someone else.

From the age of 60 the account holder is free to make full or partial withdrawals from the account, for any purpose will still being able to benefit from the 25% bonus, funds are permitted to remain invested and any interest will be tax-free.

Contributions will only be eligible to be included in the bonus up until the date of the savers 50th birthday.

Other withdrawals

Savers under 60 years old will be able to make withdrawals for other reasons than property purchase however this will not receive the bonus or interest on their savings and will need to pay a 5% charge on the amount withdrawn.

Other ISAs

Savers will be permitted to have other Kinds of ISAs, meaning it would be possible to have a cash ISA, investment ISA and Lifetime ISA however they will all sit within the same isa allowance so you will need to ensure you do not exceed this limit.

Invest From
£100 single or £25 per month
Fund Choice
Over 2,500 Funds, Investment Trusts, Bonds, ETF's or Cash
Details
Take advantage of the 25% government top-up towards your first home or retirement

Why we like it: Choose your own funds or alternatively a ready made portfolio. Market-beating savings and discounts of up to 5.5%. No charge to buy and sell funds. Low, tiered annual charges for holding funds, with a maximum of just 0.45% per annum. Free fund updates and analysis from experienced research team. Invest with a financially secure, FTSE 100 company. Capital at risk.

Important information: The value of investments can go down as well as up so you may get back less than you invested. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser. Tax treatment depends on individual circumstances and all tax rules may change in the future.
Invest From
£25 per month
Fund Choice
Over 2,000 Funds, Shares and ETF's
Details
Take advantage of the 25% government top-up towards your first home or retirement

Why we like it: Wide range of investment funds to help you build a diversified portfolio across geographic markets, industry sectors or asset classes. You can invest in AJ Bell Passive funds, or choose from the recommended active and tracker funds on the Favourite funds list. Or, you can browse our extensive funds universe. Deal online and on the go with our free mobile app. Free subscription to Shares magazine if your balance is £4,000 or more. Capital at risk.

Important information: The value of investments can go down as well as up so you may get back less than you invested. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser. Tax treatment depends on individual circumstances and all tax rules may change in the future.
Invest From
£100 single
Fund Choice
Fully managed or Fixed portfolios
Details
Take advantage of the 25% government top-up towards your first home or retirement

Nutmeg Lifetime ISA

Important information: Capital at risk. Charges may apply.  Tax rules may change in the future and whether particular tax rules benefit you, will depend on your individual circumstances

Deposit Plan Offer

Looking for a Capital Protected alternative to Cash?

Potential 14% after 6 years 

  • Potential 14% if the FTSE 100 rises by any amount after 6 years
  • Equivalent to 2.33% per year
  • 6 year term
  • Available as cash ISA, non ISA or ISA transfer
  • Capital Protected – receive your initial capital back at the end of the term no matter how the FTSE 100 performs
Our view: The 14% potential return is equivalent to 2.21% compound growth each year which is significantly more than the current leading longer term savings rates More Plan Details »
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