Martin Lewis explains whether Lifetime ISA or Help to Buy is better

Martin Lewis has issued a warning over Help to Buy and Lifetime ISAs- as he explains which one you should get. The BBC Sounds star shared an alert via Twitter, now X, where he went through the positives and negatives of each.

"One of the biggest questions I’m asked by first-time buyers is, 'I’ve got a Help to Buy ISA should I be moving it across into a Lifetime ISA?', only one way to decide….," ITV Mr Lewis said. Mr Lewis' "in a nutshell summary" on the Money Saving Expert sheds light.

In it, Mr Lewis, the Money Saving Expert, explains: "If you'll DEFINITELY buy a home for less than the LISA maximum of £450,000, are aged 18 to 39, and you WON'T do it within a year of opening, and can max out the savings, go for a LISA as you will get a bigger bonus.

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"Yet if you're BUYING QUICKLY, you're 40 or over, or you're not 100% sure you'll buy at all, then it's safer to stick with your H2B ISA." Mr Lewis said: "Here we go - it's the battle of the first-time buyers, with Lifetime Isas in the blue corner and red corner Help to Buy ISA."

He said: "The boost is the same in both of them but you can put £4k in a Lifetime ISA, and the boost is 25 per cent, while the Help to Buy lets you put in £2,400 a year - with no withdrawal penalty so that's a victory for them there."

Mr Lewis said: "The max price is £450000 to £250000 - so Lifetime ISAs are a winner there, and you get your bonus at exchange NOT on completion so that's another victory." He said: "If you don't have one already, just open the top LISA and ask it to transfer the money across from your H2B ISA. If you already have a LISA, just contact it and request a transfer.

If you have more than £4,000 in your H2B ISA, you will need to move £4,000 now and then ask to transfer the rest during the next tax year. Some H2B ISAs may close your account when you transfer some of the money out, in which case you'll need to close it down, take the money out and save it elsewhere until you can put it in a LISA.