Lifetime ISAs guide

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  • veryintrigued
    veryintrigued Posts: 3,843 Forumite
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    Cant see any changes within today's budget on this.

    Stand by your beds for any institution ready to launch...
  • Tyrone_Black
    Tyrone_Black Posts: 112 Forumite
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    Disappointing to not hear a word of this today. Banks clearly wasn't no part of it.
  • darren72
    darren72 Posts: 1,288 Forumite
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    veryintrigued wrote: »
    Cant see any changes within today's budget on this.

    Stand by your beds for any institution ready to launch...

    Is there a list anywhere of which institutions have said they will launch a Lifetime ISA ? - I can only recall Hargreaves Lansdown being mentioned at one point.
  • veryintrigued
    veryintrigued Posts: 3,843 Forumite
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    darren72 wrote: »
    Is there a list anywhere of which institutions have said they will launch a Lifetime ISA ? - I can only recall Hargreaves Lansdown being mentioned at one point.

    That's probably almost the list at the moment :)

    Fingers crossed institutions are now ready to break cover!
  • silvercar
    silvercar Posts: 46,968 Ambassador
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    I'm confused whether to transfer existing HTB ISA to LISA if I'm worried that the price of the first property will be over 450k. If the areas you are looking to buy are already at a really high level, is it worth transferring if the first property is unlikely to fit the criteria?
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
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    silvercar wrote: »
    I'm confused whether to transfer existing HTB ISA to LISA if I'm worried that the price of the first property will be over 450k. If the areas you are looking to buy are already at a really high level, is it worth transferring if the first property is unlikely to fit the criteria?
    If the place is over £450k then the HTB is no use to you anyway.

    If you aren't gong to buy for at least a year, probably no real harm in transferring into a LISA some point this coming tax year and then closing it down before end of March 2018 if it becomes obvious that you are simply not going to be able to get the property you want for under the £450k.

    If you leave it until April 2018 or beyond (basically, whenever the first bonus is due to be assessed and credited), then you would suffer a penalty when withdrawing the funds for a non-qualifying purpose. If you close it down before that point, they won't seek to penalise you because you haven't had a bonus anyway.
  • RyanEzio
    RyanEzio Posts: 100 Forumite
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    Judging by the Tory Government's policies. It wouldn't surprise me if they scrap the Lifetime ISA's in a couple of years.
    Ryan
  • silvercar
    silvercar Posts: 46,968 Ambassador
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    bowlhead99 wrote: »
    If the place is over £450k then the HTB is no use to you anyway.

    If you aren't gong to buy for at least a year, probably no real harm in transferring into a LISA some point this coming tax year and then closing it down before end of March 2018 if it becomes obvious that you are simply not going to be able to get the property you want for under the £450k.

    If you leave it until April 2018 or beyond (basically, whenever the first bonus is due to be assessed and credited), then you would suffer a penalty when withdrawing the funds for a non-qualifying purpose. If you close it down before that point, they won't seek to penalise you because you haven't had a bonus anyway.

    Thank you for this.

    If I leave the money in HTB ISA would the bonus be added before I needed the money?
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • Sebrof89
    Sebrof89 Posts: 9 Forumite
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    After the message about transferring to a new product called a Lifetime ISA appeared on the Halifax and Bank of Scotland websites I asked if and when they will be offering this product. The exact response I got was "We don't currently offer this account & don't have any plans to do so".

    I presume the message on their respective websites is aimed at customers transferring out of their Halifax/BoS HTB ISA to somewhere that actually is offering the LISA.

    S89
  • juniordoc
    juniordoc Posts: 366 Forumite
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    Does anyone think this rule that you have to have had a LISA for one year in order to claim the bonus will result in a rush of people wanting to buy in April 18 who have been building their HTB/LISAs?
    I can't really understand the rationale behind this rule either, particularly for those who have a HTB ISA balance to transfer into the LISA.....
    Any thoughts?
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