Lifetime ISAs guide

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  • adsy_
    adsy_ Posts: 4 Newbie
    bowlhead99 wrote: »
    It depends on what you are looking for a solution *to*.

    I presume you are looking to complete on a property purchase at some point early May 2018 after the bonus is paid for the 2017/18 financial year at the end of April / early May 2018? Which is why you are looking to open a Nutmeg account that you don't actually want and will transfer out of, just to start the clock ticking on you having had an ISA open twelve months before you can take a penalty-free withdrawal ?

    You've not mentioned in any of your posts so far that this is the case, but I'm assuming that's why you want to do your plan. If that is the case, then your plan would generally work. However, there's absolutely no urgency to open a Nutmeg account tomorrow.

    Your eventual LISA provider is not going to report to HMRC how much you have contributed into your LISAs during 2017/18 until after 5 April 2018 has passed and they have had time to do their general tax-year end processes and write and submit the report, which may take a couple of weeks. Then HMRC or the administering agency has to review it and send a pile of bonus money back the other way, to get allocated to your account. So, you are not going to be able to withdraw the bonus as early as 6 April 2018. So you do not need to have opened your first LISA account as early as 6 April 2017.


    Thank you for the clarification, Yes I am looking to purchases somewhere within the next 18 months, I would be willing to hold off untill i receive the bonus in Apr/May 18. More time to save!
  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
    Name Dropper First Post First Anniversary Post of the Month
    adsy_ wrote: »
    Thank you for the clarification, Yes I am looking to purchases somewhere within the next 18 months, I would be willing to hold off untill i receive the bonus in Apr/May 18. More time to save!
    Sure, but as a practical point it is better to buy the property of your dreams in March 2018 for £200k than miss that property while holding out for a £1k bonus on your £4k LISA contributions and then eventually end up spending £220k on a property you don't even like as much.

    If there is any chance of you being able to afford to buy earlier than April/ May 2018, I would keep the HTB as a standalone HTB instead of putting it into the LISA in June 2017. Because then you have kept your options open to be able to just use it as a 'normal' HTB without waiting for the LISA time limit.

    If it gets to March 2018 and you still aren't close to completing on a house, then OK, move the HTB into a LISA at that point and max out the LISA.
  • martinlewisjunior
    martinlewisjunior Posts: 94 Forumite
    First Anniversary First Post
    martinlewisjunior wrote: »
    To keep this brief.

    Stage 1: Open stocks and shares LISA with nutmeg tomorrow. (put £100 or £500) at risk 1.
    Stage 2: When cash ISA's open, transfer NUTMEG Lisa into a cash isa, at the same time also transfer help to buy cash isa into this cash isa. (or transfer help to buy isa later depends on interest rates)
    Stage 3: come April 6th 2018 , become eligible for 25% bonus. Ready to purchase a house come the late spring/ summer of 2018

    I guess I'm right in thinking this?

    Here's an update on my progress

    Stage 1: I've opened a LISA with nutmeg, good news the minimum pay in is £100 and no further monthly payments required (yet) I've done risk 2 as the assessment
    Stage 2: Wait on cash isa now
  • Jansenrovers
    Jansenrovers Posts: 34 Forumite
    I was planning on opening a LISA with Nutmeg, but as they don't accept HTB transfers, I'm now considering Hargreaves Lansdown.

    I understand the basic differences between the two, i.e. Nutmeg is a robo-invester, HL is invested in funds, but is there anything else I need to know/understand? Their fees seem to be the same as Nutmeg.

    Sorry, I'm new to all this investment stuff. Choosing an investment LISA as not looking to buy a house in the short term.

    Thanks!
  • silverspoon123
    silverspoon123 Posts: 1 Newbie
    Same as above! I'm a first time buyer and thinking of buying a house next year, but unlikely to be sooner than April 2018, so seems a no brainer to move £4000 into a lifetime ISA to give my deposit a boost.

    So to clarify, if I open an investment lifetime ISA with say Nutmeg today to get the clock ticking, if I then transfer that investment ISA to a cash lifetime ISA in June, would I get access to the government bonus in April or June 2018?
  • Guru86
    Guru86 Posts: 242 Forumite
    If you do this with nutmeg and HL don't they have a 25 exit fee? This apply when do transfers out?

    What is share centres fee and exit fee?
  • Jansenrovers
    Jansenrovers Posts: 34 Forumite
    Nutmeg don't have an exit fee. HL do.

    Don't know about Share Centre, but as their fees were about 2%, I discounted them!
  • Guru86
    Guru86 Posts: 242 Forumite
    Just looked at nutmeg. Can you only pay in a lump sum and not add to it every month? Is this the same for HL?
  • Sooler
    Sooler Posts: 3,108 Forumite
    First Post First Anniversary Combo Breaker
    ROS ALTMANN: Lifetime Isas should be abandoned - BEWARE if you are tempted to get one
    http://www.thisismoney.co.uk/money/pensions/article-4383104/ROS-ALTMANN-Lifetime-Isas-abandoned.html


  • szanane
    szanane Posts: 1 Newbie
    Hi , My Question for Life time ISA Bonus is , If I put £500 in my Lifetime ISA in April 2017 and then £3500 in March 2107 , will I still qualify for full £1000 government bonus ?
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