Isas, Lisas, Help to Buy Isas – what’s the latest?
Santander has recently halved the rate on its Help to Buy Isa from 4% to 2% less than three months after customers were treated to an increase. This meets the new Help to Buy Isa rate of 2%, effective from May 23. A Santander spokesman has said this reduction was due to “market changes”. The bank has however also re-introduced a “preferential” Help to Buy Isa rate of 2.5% for 123 World and Select customers.
Halifax, the leading Help to Buy Isa rate holder, has also reduced its rate from its once very competitive 4%, to 2.5%. This means it is now no longer the market leading account for Help to Buy Isas.
“It doesn’t look good for savers”
Andrew Haggan of MoneyComms has said he thinks it is unlikely we will see any providers rushing to replace the 4% rates previously offered by Santander and Halifax. He added that “it doesn’t look good for savers”.
However, with the new Lifetime Isa (Lisa) set for introduction in 2017, savers will be able to put away £4000 per year, as opposed to the current Help to Buy Isa limit of £200 per month. The Lisa is available to savers aged 18 to 40, and also comes with a 25% government bonus.
It is highly unlikely that most people would have the money to save into both the Lisa and a workplace pension.
Want more information?
If you are concerned about Help to Buy Isas, or want some advice about the Lifetime Isas, or Isas in general, then please give our Hove office a call on 01273 208813 where one of our Independent Financial Advisors will be happy to speak to you. We have recently recruited a new in-house Mortgage specialist and will therefore be able to fully advise you on both saving for, and obtaining, a mortgage. Alternatively, please email us [email protected].
IEP Financial is authorised and regulated by the Financial Conduct Authority (FCA).
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