Lifetime ISAs guide

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Comments

  • Owen1991
    Owen1991 Posts: 70 Forumite
    First Anniversary First Post
    LegalCashier wrote: »
    December 2015 - £1,000.00
    January - December 2016 - £200.00 x 12 = £2,400.00
    December 2016 - £85.82 (interest)
    January - December 2017 - £200.00 x 12 = £2,400.00
    December 2017 - £166.02 (interest)
    January 2018 - £200.00

    Total: £6,251.85

    So of your £4000 limit, you currently have £1 in so £3999 then minus everything you've added since 6 April 2017 and take that away from £3999.

    (Assuming you pay in at the start of each month before the 6th, that would be £1800 contributed this year + £166.02 interest = £1966.02)

    So £3999 - £1966.02 = £2032.98

    If you don't add anymore to the H2B ISA you should be able to transfer all of that into the LISA and a further £2000 for this tax year.
    2021 - £11250 Saved || 2020 - £4750 Saved || 2019 - £4000 Saved || 2018 - £9000 Saved
  • LegalCashier
    LegalCashier Posts: 42 Forumite
    First Anniversary First Post
    3rd April the H2B ISA was at £4,285.82
    So when I transfer to the LISA £1,966.03 will go towards the 17/18 allowance plus the £1.00. I will then transfer £2,032.97 from my other savings totalling £8,285.82 for 17/18. If I then transfer another £4,000.00 in 18/19 that will bring me up to £12,285.82 which should mean when I plan to buy in June the government bonus should be roughly £3,071.46.

    I opened the LISA on June 20th 2016, I know it has to be open for at least 12 months but when would you suggest to start looking at properties and applying for a mortgage?
  • Owen1991
    Owen1991 Posts: 70 Forumite
    First Anniversary First Post
    LegalCashier wrote: »
    3rd April the H2B ISA was at £4,285.82
    So when I transfer to the LISA £1,966.03 will go towards the 17/18 allowance plus the £1.00. I will then transfer £2,032.97 from my other savings totalling £8,285.82 for 17/18. If I then transfer another £4,000.00 in 18/19 that will bring me up to £12,285.82 which should mean when I plan to buy in June the government bonus should be roughly £3,071.46.

    I opened the LISA on June 20th 2016, I know it has to be open for at least 12 months but when would you suggest to start looking at properties and applying for a mortgage?

    The bonus should be paid in late April/early May, so that should definitely be in.

    As for when to start looking at properties and applying for a mortgage, I have no idea, as I haven't gone through the process or really looked into how long it takes yet.

    I guess it can never hurt to start looking at what you can afford to buy a few months before, and hope it's still on the market by the time you go to buy.
    2021 - £11250 Saved || 2020 - £4750 Saved || 2019 - £4000 Saved || 2018 - £9000 Saved
  • oz0707
    oz0707 Posts: 881 Forumite
    First Post Name Dropper First Anniversary Combo Breaker
    Will providers accept transfers of LISA's in subsequent years? If I was to choose nutmeg now, could I switch to H&L or vice versa?
  • oz0707
    oz0707 Posts: 881 Forumite
    First Post Name Dropper First Anniversary Combo Breaker
    Just had a look at AJ Bell. These seem to be the cheapest provider but not much in it. To invest 10k would I have to make 2 or 3 purchases of funds?
    Ie
    buy funds with initial 4k
    buy funds with government to up and my 4k top up year 2
    buy funds with government 1k topup?

    How do the other providers stack up with purchase fees can't remember seeing them? I'm just struggling to choose between platforms doesn't seem a lot in it. Nutmeg appear to allow transfers out but not in (yet). Although I do prefer the idea of holding a recognised fun (i.e. vanguard VLS).
  • Punder2
    Punder2 Posts: 2 Newbie
    I have the funds to top up the £4k LISA limit for this tax year from lower interest paying accounts than my HTB ISA, so I would like to transfer over just the HTB contributions from the previous tax year (~£4k) to maximise the "free" bonus, and top up with £4k from other accounts for this years limit. I would then keep the HTB ISA open as a savings account with the contributions thus far from this year & continue to contribute £200 pm there. I realise that I would only get the 25% bonus from the LISA (not both) when buying a house - I just want to take advantage of the 3.5% interest on my Halifax HTB as I can max out the LISA regardless.

    Has anyone tried a partial transfer of Halifax HTB ISA to the Skipton LISA, or can confirm whether the above approach would work?
  • Owen1991
    Owen1991 Posts: 70 Forumite
    First Anniversary First Post
    Punder2 wrote: »
    I have the funds to top up the £4k LISA limit for this tax year from lower interest paying accounts than my HTB ISA, so I would like to transfer over just the HTB contributions from the previous tax year (~£4k) to maximise the "free" bonus, and top up with £4k from other accounts for this years limit. I would then keep the HTB ISA open as a savings account with the contributions thus far from this year & continue to contribute £200 pm there. I realise that I would only get the 25% bonus from the LISA (not both) when buying a house - I just want to take advantage of the 3.5% interest on my Halifax HTB as I can max out the LISA regardless.

    Has anyone tried a partial transfer of Halifax HTB ISA to the Skipton LISA, or can confirm whether the above approach would work?

    I transferred my Barclays H2B into Skipton and I believe there was an option to partially transfer but I'm not 100%.

    Surely getting the bonus on the whole sum from your H2B ISA works out as more money than the interest you would gain from using it as a savings account?
    2021 - £11250 Saved || 2020 - £4750 Saved || 2019 - £4000 Saved || 2018 - £9000 Saved
  • pjcox2005
    pjcox2005 Posts: 1,015 Forumite
    Name Dropper First Anniversary Combo Breaker First Post
    I can't see it but does anyone know if there are any restrictions using a LISA if you are buying off a family member? Would be fine for rest of rules re FTB, house value etc.
  • Punder2
    Punder2 Posts: 2 Newbie
    Thanks Owen.

    I would still plan to maximise the government bonus by transferring the full £4K limit from another account. The only bit I wouldn’t be transferring across from the H2B would be this years contributions, which would have counted toward the limit anyway. So instead I would keep that £1800 on the 3.5% rate which is superior to some of my savings accounts elsewhere. If I transferred the whole balance, then I would only be able to start transferring in £200 to the H2B again from £0, if that makes sense!
  • eskbanker
    eskbanker Posts: 30,985 Forumite
    First Anniversary Name Dropper Photogenic First Post
    pjcox2005 wrote: »
    I can't see it but does anyone know if there are any restrictions using a LISA if you are buying off a family member? Would be fine for rest of rules re FTB, house value etc.
    I can't see how being related to the seller would make a difference, provided the sale is formally conducted in the usual way through an accredited conveyancer, with a mortgage involved, etc.
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