Theguardian iconTheguardianAug 31, 2026 ~1 min source read

First-time buyer Isa v lifetime Isa – which one should you choose?

The first-time buyer Isa is likely to replace the existing lifetime Isa in two years and is supposed to be simpler than the older account. However, it looks as if the financial benefits won't be as attractive as those offered by the current product, so there's no advantage in hanging around.

First-time buyer Isa v lifetime Isa – which one should you choose?

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The first-time buyer Isa is likely to replace the existing lifetime Isa in two years and is supposed to be simpler than the older account.

However, it looks as if the financial benefits won't be as attractive as those offered by the current product, so there's no advantage in hanging around.

Despite plans to scrap the lifetime Isa, experts still advise you open one now and not wait for the new first-time buyer account to launch If you want to start saving towards your first home, don't wait...

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The useful part

The first-time buyer Isa is likely to replace the existing lifetime Isa in two years and is supposed to be simpler than the older account. However, it looks as if the financial benefits won't be as attractive as those offered by the current product, so there's no advantage in hanging around. Despite plans to scrap the lifetime Isa, experts still advise you open one now and not wait for the new first-time buyer account to launch If you want to start saving towards your first home, don't wait until a new Isa just for first-time buyers goes on sale.

Details worth keeping

Despite plans to scrap the lifetime Isa, experts still advise you open one now and not wait for the new first-time buyer account to launch If you want to start saving towards your first home, don't wait until a new Isa just for first-time buyers goes on sale.

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