Help to Buy ISAs were launched in December 2015, with the sole aim of providing first time buyers an added bonus to help purchase a home. Anyone over the age of 16 could set up a help to buy ISA, contributing to it on a monthly basis. In order to receive the maximum bonus of £3,000 a minimum of £12,000 will need to be saved within the account. The bonus is claimed in the final stages of purchasing a first home, with the solicitor or conveyancer organising the application.

The bonus within Lifetime ISAs can be used for any first time house up to a value of £450,000, regardless of where it is in the country. However, the bonus can also be used for retirement.

From age 60, withdrawals can be made from a Lifetime ISA without incurring a fee or tax cost. The usage for any money withdrawn from this account past age 60 is entirely up to the account holders discretion.

Help to Buy ISA holders are able to convert their accounts to Lifetime ISAs but they are free to keep it as it is if they wish to. However, a time frame has been put in place for those who choose to continue saving into these accounts.

Beyond that date help to buy account holders will not be able to claim a bonus. If the Help to Buy bonus is utilised but things go wrong with the house purchase there are solutions available.

Individuals have the right to reopen their accounts if a property purchase fails, provided that a purchase failure notice (PFN) is presented to the ISA provider. ISA providers may detail that they plan to no longer offer the product, in which case they should provide notice and assist with a transfer to another provider.

As with all products, the terms and conditions should be checked to ensure a smooth transfer. For those wanting to transfer their Help to Buy ISAs into Lifetime ISAs attention should be given to the product providers. Varying providers will offer different interest rate levels and serviceability. Shopping around for the best options is generally encouraged.