I have an HTB what I’m paying into each month. No where near saved enough for a deposit yet but I’m finding the HTB info confusing. Considering swapping to a LISA but the Govt bonus would help me (even though this goes to the solicitors, I think?).
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The HTB ISA is different to the help to buy loan scheme (really helpful them having the same name...), help to buy loans are where the government loan up to 20% of the value of the home, and it enables first time buyers can get access to better mortgage rates with a lower deposit- so the deposit is minimum 5% but with the loan you then only need a 75% Mortgage
So would I better off opening a Lifetime ISA, paying in each month then getting the bonus from that when I want to buy? I’m looking at buying in 2-3 years time.
Couldn’t have said it better myself. The sad truth is many don’t have a chance of getting on the property ladder unless you use a scheme like Help to Buy. Wish that wasn’t the case for us.
I so appreciate all of your honest comments x
Agree this thread is enlightening and has made me Have a rethink. We will have saved enough of a deposit but help to buy was looking more appealing on the whole having a new home with a young family not having to do anything ourselves to a property but now thinking it may not be so bad to do it that way with what’s been said above may just take a little longer in the end to have all the money needed. It’s taken us nearly 3 years to save a chunk I suppose another year won’t hurt us x
Me personally I would
So would I better off opening a Lifetime ISA, paying in each month then getting the bonus from that when I want to buy? I’m looking at buying in 2-3 years time.
I was planning on buying my first home on the help to buy scheme but due to covid we decided not to go ahead with it and honestly I am glad we didn’t. If you want information there’s a great group on Facebook called “new build help group” the guy who runs it is a mortgage advisor and posts lots of videos with tips/help with the process. It’s not just for help to buy but I found it useful anyway 
I'm happy I stumbled upon this thread. @under the ivy I think we're in the same kind of situation, I'm also looking to buy in about 1.5-2 years. I'm definitely going to research more into Lifetime ISA's instead to see if it's worth it
Sorry if I’m de-railing the thread but has anyone had experience with Moneybox for Lifetime ISAs?
On reading people’s experiences with HTB, I’m having doubts now! I will be a single buyer so I want what is best for my money!
On reading people’s experiences with HTB, I’m having doubts now! I will be a single buyer so I want what is best for my money!
So glad it’s helping others! It’s a bloody minefield!
I have a moneybox lisa and it’s honestly the best thing! It’s costly to have though so be wary of that, it’s not worth having if you have less than 1k of savings to put in straight away because your moneybox fees will quickly outweigh your earnings.
I’ve had mine for 2 years and I’ve spent £36 on fees (doesn’t sound like a lot but compared to other similar services it’s expensive)
You invest your money in funds. Investing over the long term (5 or more years) can offer higher returns, although you can lose money. When covid hit I lost around £800, but about 12 months later, since my funds were in pre covid and I kept investing money, I’ve gained back the £800 and an extra thousand pound on top of that through the investments (so not me paying it back in!), because of the fluctuations
You can choose whether or not your account is high risk or low risk. I’ve always had mine as high risk so I’ve always gained or lost a lot more money than I would have in a low risk account.
You’re limited to saving 4K each tax year (which is April to April) but you get a 1k bonus, so your max savings are 5k per year, plus whatever your investments make
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I bought using HTB in 2018. We have a persimmon house (they are actually not that bad - we had some minor snags that were quickly dealt with and 2 years on they are still willing to come out and plaster cracks etc for us )
It completely depends on how well the houses are selling as to if they will throw in extras like flooring, upgraded kitchen etc If the estate you're buying on is popular you haven't a chance in hell of getting anything for free.
The HTB process was simple for us, our mortgage broker/solicitor did everything for us. It look about 6 weeks I think from start to finish.
But like others have said it's not ideal. After 5 years you'll be left with the loan to pay back. For us it was worth it to get on the property ladder quicker and with a much lower rate mortgage. We've already saved the money to pay it off, but if you know you won't be able to after 5 years then make sure you calculate exactly how much you will be paying a month so you're not caught out.
It completely depends on how well the houses are selling as to if they will throw in extras like flooring, upgraded kitchen etc If the estate you're buying on is popular you haven't a chance in hell of getting anything for free.
The HTB process was simple for us, our mortgage broker/solicitor did everything for us. It look about 6 weeks I think from start to finish.
But like others have said it's not ideal. After 5 years you'll be left with the loan to pay back. For us it was worth it to get on the property ladder quicker and with a much lower rate mortgage. We've already saved the money to pay it off, but if you know you won't be able to after 5 years then make sure you calculate exactly how much you will be paying a month so you're not caught out.
So glad to hear it worked out for you! Really helpful info too regarding the freebies... if you don’t ask you don’t get right
We have factored the loan payment in to our monthly budget so we aren’t caught off guard 6 years later although I know that’s not simple for everyone!
We asked for free flooring...it was a flat out no. The houses were selling so fast.
We actually looked to buy on another Persimmon estate back in August, an hour away from where we live now and they offered us free flooring, upgraded kitchen, integrated fridge/freezer and turf. The houses weren't selling as fast. We didn't end up moving in the end but it was completely different from our experience before!
Totally dependent on how well they’re doing then it seems... maybe I should play to hard get
We are in a persimmon home and can’t fault the build or aftercare it was just the sales people that weren’t very good to deal with!
We also have HTB and it was really quick and simple to get however I’m in Scotland and think it must work differently to England as we don’t need to repay anything until we sell.
We also have HTB and it was really quick and simple to get however I’m in Scotland and think it must work differently to England as we don’t need to repay anything until we sell.
Lifetime ISA is the way forward, open one up and put a £1 in so at least you start the ball rolling (you have to wait a year before you can withdraw the money for a house). You also get the bonus paid in monthly so it adds up as you go along, not at the end when you’re ready to buy. You won’t find a savings account that pays you 25% interest anywhere else!
Also if you already have savings, get them transferred in to this before the new tax year and you’ll earn the bonus for this year too (Max £1000)
I can't thank you enough for this because I have no clue about properly saving for a house. I only started a Help To Buy ISA because the government pushed it so hard and it seemed like the only option. I do already have some savings which I'll be transferring into this new Lifetime account. Thanks again, you've made me feel somewhat on-track with saving for a house
No problem. All I would tell my younger self is save & the clothes aren’t worth itI can't thank you enough for this because I have no clue about properly saving for a house. I only started a Help To Buy ISA because the government pushed it so hard and it seemed like the only option. I do already have some savings which I'll be transferring into this new Lifetime account. Thanks again, you've made me feel somewhat on-track with saving for a house
I always get 4k in mine every tax year by hook it by crook so I can get the full 1k bonus!They also don’t widely advertise the lifetime ISA as it’s only for house deposit or pension fund which when used as a pension fund is not great in comparison so they don’t like to advertise them.
Oh ive just discovered I don't have to pay anything on my HTB loan until the end of year 5. So happy I thought it was due in June phew!