Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • peter_333
    • By peter_333 1st Nov 17, 3:49 PM
    • 47Posts
    • 11Thanks
    peter_333
    Nutmeg pulls plans to allow HTB ISA transfers to LISA
    • #1
    • 1st Nov 17, 3:49 PM
    Nutmeg pulls plans to allow HTB ISA transfers to LISA 1st Nov 17 at 3:49 PM
    I've just received an email from Nutmeg, stating that their previous plan to allow a HTB ISA to be transferred into a Nutmeg LISA, will not longer go ahead. This has thrown a MASSIVE spanner in the works for my LISA plans, and I'm incredibly, incredibly frustrated and angered by the announcement. I've just finished a fairly grumpy phone call with their customer service team who have said that there's nothing they can do about it.

    While I'm sure Nutmeg won't reverse the decision to abandon the HTB transfer facility, I thought it may be worth starting a thread to discuss how people plan to proceed, to overcome this new obstacle in their LISA plans.

    For reference, here is the communication I had from Nutmeg on 7 April:
    We are already working on building the functionality to transfer HTB ISAs in to the Nutmeg LISA and this will be one of the first additions that we make. I'm expecting this to be ready in the new few weeks, so I would say that it is certain that you will be able to transfer your HTB ISA to us well before 5th April 2018.
    That's fairly unequivocal! I opened my LISA with them based on the certainty that the transfer service would be available. It wasn't a possibility that it would be available, it was a certainty!

    Can others post any correspondence they had from Nutmeg regarding the HTB transfer being up and running before the end of the financial year? Might be useful in making a formal group complaint to a relevant regulatory body.
Page 2
    • Alexland
    • By Alexland 11th Nov 17, 2:04 PM
    • 780 Posts
    • 475 Thanks
    Alexland
    Well it was a one off development for a specific financial year so of limited benefit to some customers. They haven't ruled out future LISA product development.

    A few months ago I did a telephone customer Q&A with Nutmeg they admitted they didn't know what proportion of their LISA customers were saving for a home or age 60 as they forgot to ask on signup. I pointed out this must make it very hard to understand their future management revenues and they agreed.

    As such they would have no idea how many customers were both saving for a property and planning to transfer HTB ISAs.

    I like and plan to keep our Nutmeg fixed allocation LISAs but I moved my ISA elsewhere. AJ Bell would be cheaper once the LISAs are bigger but we already have other investments with them so it would be too much risk.

    Alex
    Last edited by Alexland; 11-11-2017 at 2:09 PM.
    • dunstonh
    • By dunstonh 11th Nov 17, 2:48 PM
    • 89,930 Posts
    • 56,603 Thanks
    dunstonh
    A few months ago I did a telephone customer Q&A with Nutmeg they admitted they didn't know what proportion of their LISA customers were saving for a home or age 60 as they forgot to ask on signup. I pointed out this must make it very hard to understand their future management revenues and they agreed.
    It would make complying with MiFID II difficult as well.

    However, Nutmeg are haemorrhaging money. They are quite consistent. Since they formed, they have increased their losses annually and are reliant on capital influxes from backers. In my opinion, their model is looking increasingly like one where they "buy" market share as quickly as possible and hope to get a buyer. Their annually increasing losses cannot continue. The losses reported last month were up to 9.3m for 2016 and it has warned it may need more investment. That £30m influx it got from new backers in 2016 isnt going to last long at this rate.

    Research by SCM direct expects most UK robo-advisers will go bust prior to acquiring sufficient assets under management.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Alexland
    • By Alexland 13th Nov 17, 9:45 PM
    • 780 Posts
    • 475 Thanks
    Alexland
    Today I logged into Nutmeg and they presented a new MiFID II additional information capture screen!
    • asc1991
    • By asc1991 6th Dec 17, 1:13 PM
    • 40 Posts
    • 6 Thanks
    asc1991
    Yep, I too am very frustrated at this, especially as LISA > LISA transfers aren't that readily available. Does anybody know anyone doing this?
    • asc1991
    • By asc1991 6th Dec 17, 1:17 PM
    • 40 Posts
    • 6 Thanks
    asc1991
    Hargreaves Lansdown seem to allow both transfer of an existing LISA and transfer of a HTB ISA. I am slightly put off by their £25 transfer or exit fees, but besides that, maybe they fit the bill.
    Originally posted by peter_333
    HL do not let you import an external LISA into them. The only company that do that is Skipton. So once you transfer to Skipton you hit a dead end and cannot possibly transfer the LISA out. 0.75% interest is not somewhere that I would particularly like to be stuck...

    I have a H2B with Hallifax and a LISA with Nutmeg. I was planning to combine it all in a LISA at the end of this year - plan failed.
    Last edited by asc1991; 06-12-2017 at 1:29 PM.
    • peter_333
    • By peter_333 6th Dec 17, 1:39 PM
    • 47 Posts
    • 11 Thanks
    peter_333
    Yesterday I kicked off the process of transferring my Nutmeg LISA to Skipton. It is a cash LISA with very poor interest (0.75%), but if you want to make use of the LISA and not loose your HTB bonus, it seems like the best option right now.
    • peter_333
    • By peter_333 6th Dec 17, 1:40 PM
    • 47 Posts
    • 11 Thanks
    peter_333
    I have a H2B with Hallifax and a LISA with Nutmeg. I was planning to combine it all in a LISA at the end of this year - plan failed.
    Originally posted by asc1991
    Exactly the same situation for me. Halifax HTB and Nutmeg LISA. Such a pain!
    • asc1991
    • By asc1991 12th Dec 17, 1:43 PM
    • 40 Posts
    • 6 Thanks
    asc1991
    Major update!
    So I've just gotten off the phone with Nutmeg and Hargreaves Lansdown and - guess what!

    You CAN transfer a lifetime ISA from Nutmeg to a lifetime ISA with HL.

    The reason HL don't have this on their website is because you can only do this with Nutmeg > HL. So if you have a LISA with anybody else, you cannot transfer to HL.

    So I plan to transfer my Nutmeg LISA to a HL LISA and then my Halifax H2B to the same HL LISA.

    HOORAH!
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,245Posts Today

5,415Users online

Martin's Twitter
  • RT @bearface83: @MartinSLewis check out the @Missguided new 60% off offer. Upping the cost of items almost double to make us think it?s a?

  • RT @efitzpat: Thank you SO SO much @MartinSLewis for your Student Loans refund advice! I just got a grand refunded right before Xmas! Whoop?

  • Have a lovely weekend folks. Don't do anything (fiscally) that I wouldn't do!

  • Follow Martin