Help to buy versus lifetime ISA. Which one should I choose?

[isthismummy]

Help would be much appreciated please as I'm really not sure what would be the best option.

I'm about to inherit a small amount of money and DH and I would like to put some of it towards a deposit on first home. We are hopefully aiming to buy in two years time.

My original idea was for each of us to open a help to buy isa with a grand each. We would then save £100 a month each into our respective isas. However I've just been reading about Lifetime isas and now I'm not sure if they would offer a better deal? The 25% a year bonus sounds amazing Woukd it be worth it though when we want to buy so soon? If so would we still be better off opening separate isas or a single one?

Saving has never been my strong point, and any advice would be wonderful. TIA.

LISAs allow you to save 4k per annum. Each. And qualify for 25% bonus annually which you earn interest on. (Help to buy is around 3k limit per year and you get bonus at end so you cannot earn interest on it like you can for LISA).

LISA house purchase is for 450k max, help to buy is a lot less i think.

Help to buy is only cash solution whereas LISA could be stocks and shares or cash. There aren't many LISA providers as still early days and only one provider who offers cash solution (think it's Skipton). Help to buy is offered by more providers.

If you are buying within 2 years you might feel comfortable with cash solution as lower risk (personally I prefer s&s and would opt for LISA low -med risk funds because cash rates are crap and I would prefer to earn interest on my annual bonus - every little counts!)

I would see if there are comparison calculators on line to play around with.

Thank you mintbiscuit I really appreciate your reply.

It sounds like lifetime is probably the way to go then. I'm looking at cash rather than s&s, so will have a look at Skiptons. Money saving expert suggests opening a help to buy now and then transferring it to a LISA in March 2018. Not sure why, but I'm assuming it's to earn more interest?

I've looked for online comparison but the ones for LISAS are far between and not very clear. I've not really got anyone to ask for advice and DH is even more clueless than I am!

You can both have a HTB ISA too, and both claim a 25% bonus.

This article spells it out bit by bit. It's helped us. (Well helped us advise one of our kids who's saving up) goo.gl/TSeu5E

I think the LISA market will improve as more banks start to do them.