Is there a more beneficial product than an ISA to purchase a second property?
29 March 2022
Question by Marcus
Hello, I was doing some research about ISA accounts and came across your site. I want to use my ISA to purchase my second property in the future but didn’t know if there was a more beneficial ISA to have for this or if I was just better having my savings?
Answered by Boring Money
I have interpreted your question to mean you would like to use the money you built up in an ISA to purchase your second property, rather than you wanting to buy the property in an ISA (which you cannot do).
There are no specific ISA products our there at the moment for property purchase.
The Lifetime ISA is only helpful for purchasing a first home rather than a second property.
The Help to Buy ISA is no longer available for new applicants.
Over the long term, holding your money in a Stocks & Shares ISA is likely to provide you with far superior returns than holding your money in a Cash ISA or savings account.
Normally you would want to hold your investments for a minimum of five years, so if you intend to purchase your second property before then, a savings account may be the best option.
I hope that helps!