How new First Time Buy ISA will work - and what it means for Lifetime ISA holders

The Government is set to scrap the Lifetime ISA (LISA) and introduce a new savings product designed specifically for first-time buyers.

Last November – at its Budget – the Labour Party said that the LISA wasn’t “working for everyone” and announced plans to launch a “simpler” ISA aimed at those buying a home for the first time.

It has now unveiled a consultation on plans for a First-Time Buyer ISA (FTB ISA), which is set to be the replacement.

The new product – projected to be launched in 2028 – will only be available to those saving for property – whereas the LISA also allows you to save for retirement.

Here are the details we know and those that are still up in the air.