First-time buyers have just one month left to open a help to buy ISA, warns Martin Lewis

29 October 2019, 14:52

Time is running out to set up a H2B ISA. Picture: Getty

The deadline to open a Help to buy ISA is looming

Martin Lewis has urged prospective first-time buyers to open a help-to-buy ISA as soon as possible - as the deadline to do so is nearly here.

The money-saving expert has warned that anyone hoping to do so will need to before 30 November, after which the help-to-buy (H2B) will be replaced by a Lifetime ISA (LISA).

Martin Lewis has urged first-time buyers. Picture: Getty

You can open the ISA for as little as £1, and the government-led scheme gives young people a 25 per cent bonus to help them buy their first home.

Martin Lewis said of H2Bs and LISAs: "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."

What is a help-to-buy (H2B) ISA?

The H2B ISA was set up to help first time buyers get on the property ladder.

When prospective buyers set up the ISA, the government will match any contributions made by 25 per cent (up to £12,000).

You can start at ISA with a minimum of a £1,000 contribution - although if you don't have that amount before the 30 November deadline you can set one up for £1 and add the rest of the money at a later date.

If you do want to start a H2B ISA, you can save up to £1,200 in the first month and £200 each following months - so it's best to wait until you do have the maximum amount to open one.