First-time buyers are set to get a new Government-backed savings scheme to help them get on the property ladder.The Treasury has launched a consultation on a new first-time buyer Isa designed to help aspiring homeowners build a deposit. This will replace the Lifetime Isa (Lisa) in 2028, although those who already have Lisas will be able to keep them open. There are key differences between the two accounts. The new savings scheme would enable savers to make lump-sum contributions, whereas Lisas limit them to £4,000 per year.And savers would receive the Government bonus when contracts are exchanged on their first home, rather than into their account every month. Out with the old and? First-time buyers set to get new Government-backed savings scheme What was wrong with the Lisa?The Lisa faced scrutiny over withdrawal penalties and concerns that property price caps have failed to keep pace with house prices in some parts of the country.At present, savers under the age of 40 can open a Lisa and they can pay in until they hit 50. The Government will chip in £1 for every £4 they save, giving a £1,000 bonus on the maximum £4,000 a year they can pay in.The money saved can only be used for a first home, which must cost less than £450,000, or for retirement - and those falling foul of the rules are subject to a 25 per cent penalty charge on the amount withdrawn.The penalty applies to the total amount of funds being withdrawn, not the total amount of funds that have been added. This means someone can lose not only the entire bonus, but some of their own cash as well.Government figures show unauthorised withdrawals - those which incur the penalty - have continued to rise, prompting questions over whether the product is meeting its original objective of helping more people onto the property ladder.The consultation document says more Lisa holders have lost a part of their original savings, than have used it to purchase a house.As well as withdrawing because they need the money for other things, more buyers are taking out the cash to buy a home above the house price cap of £450,000. What will be different about the new Isa? Bonus paid at the end Under the plans, the new first-time buyer Isa will include a Government bonus paid at the point someone makes a withdrawal for buying their first home, instead of paying every month or year.This is similar to the old Help to Buy Isa, which closed to new savers in 2019. However, paying the bonus monthly means savers can earn interest on it, adding to their deposit fund. This won't be possible under the new scheme.Brian Byrnes, director of personal finance at Moneybox, which provides Lifetime Isas, says:'One of the most valuable features of the Lifetime Isa is the monthly Government bonus being added as people save, allowing those funds to start working for customers straight away, creating a powerful and visible reward for positive financial behaviour. 'Moving to a model where the bonus is only paid at the point of purchase would reduce that benefit and could leave first-time buyers needing to save for longer to reach the same deposit goal.'No withdrawal charge Paying the bonus at the final stage removes the need for a withdrawal charge, though. Unlike today, it means a saver can withdraw funds, should their circumstances change, without penalty.Rachael Griffin, tax and financial planning expert at Quilter says: 'Thousands of savers have been charged for accessing their Lisa for an unauthorised withdrawal, often because their financial circumstances changed unexpectedly and they needed to dip into their savings.'Allowing people to access their money when needed, while still being incentivised to save towards a deposit for a first home, would be a much better design. How the new product compares to the Lisa Product New first time buyer Isa Lifetime Isa (Lisa) Age Must be 18 or over to open an account, with no upper age limit.Must be 18 to 40 to open an account, with no subscriptions allowed over 50. Property price cap To be confirmed at a future fiscal event. The cap will match that of the Lisa and HtB Isa when announced. £450,000 Timing of the bonus and withdrawal charge Bonus paid at exchange and no withdrawal charge. Individuals will have 90 days from the point of claiming the bonus to complete their purchase. Bonus paid upon deposit at the end of the month. Individuals will have 90 days from the point of claiming the bonus to complete their purchase. Withdrawal charge of 25% on any withdrawals. Bonus eligibility Held account for 1 year Held account for 1 year Must use with a mortgage Yes Yes Account types available Cash and stocks & sharesCash and stocks & shares No age limitPeople will have to be 18 or over to open an account, with no upper age limit, unlike with the Lisa which cuts off at 40.Griffin adds: 'The average age of a first time buyer has been consistently on the rise, yet the lifetime Isa effectively shut the door on those who did not get onto the property ladder prior to turning 40. 'A reformed product with no age limit would reflect a more modern housing market.'Price cap remains The consultation document states that the product will still place limits on the maximum possible price someone can buy a home for.It says the property price cap will be confirmed at a future fiscal event and that the cap will match that of the Lisa and Help to Buy Isa when announced.It has been unchanged at £450,000 since the Lisa first launched in 2017, despite substantial house price rises.Quilter's Rachael Griffin added: 'Unfortunately, this does not appear to have been addressed within the new product as yet, and even goes as far as suggesting that the existing cap is suitable. 'The Treasury is consulting on the cap, alongside considerations on the annual subscription limit, so time will tell whether a more generous cap is brought to the table.How much someone will be able to save in the new product each year is also to be confirmed, with it all counting towards the overall £20,000 maximum Isa allowance. Will it make it easier to buy a home? Property insiders have also warned that another savings product alone will not solve the deeper challenges facing first-time buyers.High house prices and deposit requirements, affordability pressures and a shortage of suitable homes continue to present significant barriers to homeownership.Evren Ergin, founder and developer at property valuer ValuQ, said: 'A better way to save a deposit is welcome, but it treats the symptom, not the disease. 'Help with the deposit, by all means. But pair it with fixing the entry-level itself: leasehold reform, honest service charges, and an end to flats that trap their owners. 'Otherwise we are getting first-time buyers through the door of a property that is quietly losing its value.'Others have questioned whether introducing another government-backed savings scheme risks adding further complexity to an already crowded landscape that has included Help to Buy, Help to Buy Isas and Lifetime Isas over the past decade.Michelle Lawson, director at Fareham-based Lawson Financial, said the Government risks causing more confusion.'Simplicity and continuity is what is needed in any element of financial planning, not just moving the goalposts and reinventing the wheel,' she said.Best mortgage rates and how to find them Mortgage rates have shot up again due to inflation triggered by the conflict with Iran reversing hopes that the Bank of England would cut rates. This means those remortgaging or buying a home face higher costs.That makes it even more important to search out the best possible rate for you and get good mortgage advice, whether you are a first-time buyer, home owner or buy-to-let landlord.This is Money's partner L&C can help you with its fee-free mortgage service.> Compare mortgage rates> Find the right mortgage for you To help our readers find the best mortgage, This is Money has partnered with the UK's leading fee-free broker L&C.This is Money and L&C's mortgage calculator can let you compare deals to see which ones suit your home's value and level of deposit.You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes.If you’re ready to find your next mortgage, why not use This is Money and L&C’s online Mortgage Finder. It will search 1,000’s of deals from more than 90 different lenders to discover the best deal for you.> Find your best mortgage deal with This is Money and L&C Mortgage service provided by London & Country Mortgages (L&C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage.