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First-Time Buyers Urged To Open A Help To Buy ISA Now

First-Time Buyers Urged To Open A Help To Buy ISA Now

Martin Lewis says £1 can make the difference...

Lisa McLoughlin

Lisa McLoughlin

Martin Lewis has told first-time buyers to open a Help to Buy Isa in the next six months to capitalise on a potential £3,000 free cash injection.

The financial specialist, who founded Money Saving Expert, has urged first-time-buyers to open the specialised savings account, even if they aren't looking to purchase a home yet.

The Help to Buy ISA, which sees the government top-up your savings by 25 per cent, was launched at the end of 2015 to help first-time buyers onto the property ladder.

PA

However, it is being dropped from 30th November in favour of the Lifetime ISA (LISA) which is why the money guru has urged first-time buyers to open an account now by putting in £1 and then adding to it when they're ready.

The maximum you can open an account with is £1,200 and you're limited to putting in £200 a month. While the minimum you must have saved for the government bonus to kick in is £1,400, which will be boosted by £350.

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The most the government will give you is £3,000 on savings worth up to £12,000, bringing your total up to an impressive £15,000.

In the MSE newsletter, Martin penned: "If you think you'll need these [the Government top-up] but aren't sure, just open them. You need £1 in a Help To Buy Isa by November 30 or you lose the opportunity."

PA

Adding to the good news, the government will also give up a 25 per cent bonus if you use your LISA to buy a home or for retirement.

Although you can have both ISAs at the same time, you can only use the bonus from one of them towards buying your home.

He continued: "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 money to save in, if you have it."

Featured Image Credit: Pexels

Topics: Life News, Martin Lewis, Real