[Finance] Lifetime ISA

[Wrong-Direction]

Has anyone had any experience setting up a lifetime or help to buy ISA, pros, cons and the best company to use?

 

[LamieRobertson]

Has anyone had any experience setting up a lifetime or help to buy ISA, pros, cons and the best company to use?

You are becoming so domesticated

 

[Steve Foster]

Has anyone had any experience setting up a lifetime or help to buy ISA, pros, cons and the best company to use?

Feel free to contact us tel: 01903 214640 (we are Worthing based) - we are Independent Financial Advisers

www.investment-solutions.co.uk

........ always recommend Independent Advice. For reviews of IFA Firms - you can check out www.vouchedfor.co.uk/
this is the only place that the public can rate their IFA !

 

[SIMMO SAYS]

You are becoming so domesticated

I would say 'Under The Thumb'

 

[timbha]

Be careful. I think the help to buy ISA can’t be used for the deposit

 

[Springal]

Be careful. I think the help to buy ISA can’t be used for the deposit

What? Isn’t that the whole point? Can be withdrawn penalty free for a first house purchase or when you get to 60.

 

[Weststander]

Shares ISA’s - Hargreaves Lansdown operate online and over the phone. Excellent service and website, extremely low commission, which makes a far bigger difference to the final policy value than many would realise.

 

[timbha]

What? Isn’t that the whole point? Can be withdrawn penalty free for a first house purchase or when you get to 60.

Maybe I was believing the alarmist press but I seem to recall that at one time the rule was that funds could only be grossed up with the govt contribution after the purchase had been completed

 

[Bracknell_Gull]

I can assure you that the Help to Buy ISAs can definitely be used for your deposit as long as it is a first time buyer (this could be you or your partner if one of you has owned a property previously)

I used a Help to Buy ISA through my bank to pay for my deposit on my first home in December. I found it a great way to save (I also used another ISA to boost my savings as you can only deposit £200 per month and I wanted to move out sooner than this monthly amount would have allowed).

My solicitor applied to HMRC, once the sale was in motion, for the Government bonus payout too, all very simple and straightforward.

 

[Dunk&Disorderly]

Wondering the same thing. Want to buy my first house ideally within the next 2 years and wondering whether a Help to Buy or a LISA is the way to go? Would be able to contribute the max amount each month that generates interest.

 

[timbha]

https://www.moneysavingexpert.com/savings/help-to-buy-ISA/

 

[Shropshire Seagull]

They both do the same thing [25% bonus] but in a very different way - LISA is front loaded with bonus added each year, HTB bonus is paid out at conveyancing [to solicitor].
I've set up one of each for my 23 y-o daughter.
Really does depend what your plans are, how much you can afford to put aside, and the timing of purchase.
Per link above, Martin Lewis says open a LISA with £1 as these can only pay out a bonus once open for 12 months - so you've started that clock and only a pound out of pocket.
The HTB ISA is very limited on how much you can pay in - a grand to open and then £200 PCM - sooner you start, sooner the fund can accumulate.

When I set daughters up, only Skipton were doing a LISA [others might now be doing them] - for the HTB, at the time Virgin was best with 2.25% - but they all change their rates regularly so again, money saving expert will help you choose.

Good luck ...

 

[mwrpoole]

They both do the same thing [25% bonus] but in a very different way - LISA is front loaded with bonus added each year, HTB bonus is paid out at conveyancing [to solicitor].
I've set up one of each for my 23 y-o daughter.
Really does depend what your plans are, how much you can afford to put aside, and the timing of purchase.
Per link above, Martin Lewis says open a LISA with £1 as these can only pay out a bonus once open for 12 months - so you've started that clock and only a pound out of pocket.
The HTB ISA is very limited on how much you can pay in - a grand to open and then £200 PCM - sooner you start, sooner the fund can accumulate.

When I set daughters up, only Skipton were doing a LISA [others might now be doing them] - for the HTB, at the time Virgin was best with 2.25% - but they all change their rates regularly so again, money saving expert will help you choose.

Good luck ...

Are you aware that you can only use one of them when it comes to the purchase? It will need to be the LISA otherwise you’ll be locked in that one or face penalties to close down. I had both for my eldest and didn’t realise you could only use one so he is now moving £4K across each year to get it all in the LISA.

 

[Shropshire Seagull]

Are you aware that you can only use one of them when it comes to the purchase? It will need to be the LISA otherwise you’ll be locked in that one or face penalties to close down. I had both for my eldest and didn’t realise you could only use one so he is now moving £4K across each year to get it all in the LISA.

Yes, when it comes to purchase time, if you've had the LISA less than a year you will forgo the £1 opening deposit you invested. If LISA is > 1 year, trf all the HTB into the LISA.
There is a cap on annual payments to the LISA [£4k I think], so if saving for longer, soon as HTB goes over £4k balance, trf £4k to LISA [will take 15 months if paying max £200 into HTB, then every 20 months]

 

[Wrong-Direction]

Seeing as we would like to stay in Brighton and theres no houses for 250k or less I think the lifetime isa is the right option.
Looking at using moneybox app to do it, a little hesitant even though it says the money is safe in a bank..

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