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  • FIRST POST
    • MSE Helen Saxon
    • By MSE Helen Saxon 16th Mar 16, 5:06 PM
    • 75Posts
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    MSE Helen Saxon
    Lifetime ISAs guide
    • #1
    • 16th Mar 16, 5:06 PM
    Lifetime ISAs guide 16th Mar 16 at 5:06 PM
    Hi!

    This is the discussion thread for the



    Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.


    Thanks folks,
Page 45
    • jonny_k
    • By jonny_k 10th Aug 17, 9:59 PM
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    jonny_k
    Heya guys, I've signed up to the Skipton lifetime ISA and hope to add in 4K by April. I've noticed it says 'From 2018/19 tax year the government will pay the bonus based on the contributions you have made each month.' Does that mean in order to get the full 1k next tax year you'd have to put in 4k as soon as the 2018/19 tax year starts? I had hoped to put the 4k in around March 2019.
    • eskbanker
    • By eskbanker 10th Aug 17, 11:50 PM
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    eskbanker
    Heya guys, I've signed up to the Skipton lifetime ISA and hope to add in 4K by April. I've noticed it says 'From 2018/19 tax year the government will pay the bonus based on the contributions you have made each month.' Does that mean in order to get the full 1k next tax year you'd have to put in 4k as soon as the 2018/19 tax year starts? I had hoped to put the 4k in around March 2019.
    Originally posted by jonny_k
    No, it means that, unlike this tax year, when bonuses will only be paid after the end of the year, it'll add the 25% bonus on each contribution the month after it's paid in, which can be lump sums at the beginning or end of the year, or regular amounts during the year, or any other permutation totalling no more than £4K over the year.
    • Rowbo
    • By Rowbo 11th Aug 17, 10:34 AM
    • 22 Posts
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    Rowbo
    Presumably you are saving for retirement? Generally use lump sums for fixed term saving, and regular drip feed in for investments unless you have a cash pile. The gov bonus is paid on contributions so as long as you put in 4000 each tax year you get a guaranteed 1000. The fees for buying funds are very small, platform fee is more important, AJBell certainly looks the best at the moment
    Originally posted by jpuphill
    Thank you. So paying in around £333 a month after this tax year will work just as well as putting the £4000 in at the end of each tax year. I was a bit worried it would cost me lots more to do.
    And yes, it's for retirement.
    Thank you! X
    • Melvillian
    • By Melvillian 12th Aug 17, 1:06 PM
    • 2 Posts
    • 1 Thanks
    Melvillian
    Hi all. I have a question about using Lifetime ISAs to buy a home. If I and my wife both use Lifetime ISAs for the purchase, would we both have to be on the mortgage application? I'm concerned that my wife's poor credit rating could negate the benefits of the Lifetime ISA. Many thanks for any information anyone might have on this.
    • Buckets86
    • By Buckets86 13th Aug 17, 1:23 AM
    • 1 Posts
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    Buckets86
    Hello all,


    I put a v small deposit into a Nutmeg Stocks & Shares LISA earlier in the year (when there was no cash option), with the intention of transferring in my Help to Buy ISA in March 2018. Now I've noticed (in the main LISA guide) that Nutmeg doesn't accept transfers (yet). Given that there also seems to be a risk with transferring into the Skipton Cash LISA, what do you think is the best thing for me to do now? Transfer my small deposit into a Skipton LISA? Or wait and see if Nutmeg starts allowing transfers?


    Hope that makes sense!
    Thanks
    • Ed-1
    • By Ed-1 13th Aug 17, 9:34 PM
    • 1,938 Posts
    • 1,034 Thanks
    Ed-1
    Hello all,


    I put a v small deposit into a Nutmeg Stocks & Shares LISA earlier in the year (when there was no cash option), with the intention of transferring in my Help to Buy ISA in March 2018. Now I've noticed (in the main LISA guide) that Nutmeg doesn't accept transfers (yet). Given that there also seems to be a risk with transferring into the Skipton Cash LISA, what do you think is the best thing for me to do now? Transfer my small deposit into a Skipton LISA? Or wait and see if Nutmeg starts allowing transfers?


    Hope that makes sense!
    Thanks
    Originally posted by Buckets86
    Personally I've got a Skipton LISA and am planning to transfer in during March 2018. I can't see them stopping accepting H2B ISA transfers but can always open another that does allow transfers if it comes to it at the time and close the Skipton one (opening a new Skipton one next tax year if need be).

    Bear in mind that whichever you choose, you can't pay/transfer into 2 LISAs in the same tax year, so if you open a Skipton one you'll need to transfer in or close the Nutmeg LISA to the Skipton LISA.
    • matty_544
    • By matty_544 16th Aug 17, 10:16 AM
    • 187 Posts
    • 248 Thanks
    matty_544
    Hi Everyone

    Can someone explain to me the max bonus you can earn when you factor in transfering a HTB into your LISA?

    I read the max bonus one can earn is 32k from 18-50yrs old when u put in 4k each year. But sure that doesnt include the bonus if u transfer in a HTB.
    Is £1200 + 16x £200 = £4200 Dec15 to April 17 the max u can transfer in which will earn a bonus outside of you annual 4k LISA allowance?

    Would the bonus on this HTB amount at 25% be £1050 on top of the possible max 32K if u hold the LISA from 18 -50 yr olds so the very max u can get is £33050??

    Any help is welcomed
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    • eskbanker
    • By eskbanker 16th Aug 17, 11:02 AM
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    eskbanker
    Would the bonus on this HTB amount at 25% be £1050 on top of the possible max 32K if u hold the LISA from 18 -50 yr olds so the very max u can get is £33050??
    Originally posted by matty_544
    Yes, the bonus would apply to transferred pre-17/18 HTB funds so you could indeed get £33,050 if you happened to be born between 7 April 1998 and 1 December 1999 (to be old enough to have opened a HTB in December 2015 but young enough to make 32 years of contributions to a LISA between 6 April 2017 and 50th birthday), and made all the necessary payments on optimal dates....

    It's still not the absolute maximum though, because the interest earned on the HTB between December 2015 and April 2017 also qualifies for the LISA bonus once transferred, so if you're really determined to calculate the theoretical maximum for some reason then you'd need to factor that in too!
    • matty_544
    • By matty_544 16th Aug 17, 8:27 PM
    • 187 Posts
    • 248 Thanks
    matty_544
    Yes, the bonus would apply to transferred pre-17/18 HTB funds so you could indeed get £33,050 if you happened to be born between 7 April 1998 and 1 December 1999 (to be old enough to have opened a HTB in December 2015 but young enough to make 32 years of contributions to a LISA between 6 April 2017 and 50th birthday), and made all the necessary payments on optimal dates....

    It's still not the absolute maximum though, because the interest earned on the HTB between December 2015 and April 2017 also qualifies for the LISA bonus once transferred, so if you're really determined to calculate the theoretical maximum for some reason then you'd need to factor that in too!
    Originally posted by eskbanker

    Thanks another question relating to LISAs

    Regarding the next tax yr in April 18, ive read ppl will pay in April 18 another 4k to recieve the 25% 1k bonus the following month. Why not wait until the end of that tax yr say mar 19 to deposit the other 4k, cant see the rate increasing from 0.5% compared to saving the 4k elsewhere during that tax yr.
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    • eskbanker
    • By eskbanker 16th Aug 17, 11:43 PM
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    eskbanker
    Regarding the next tax yr in April 18, ive read ppl will pay in April 18 another 4k to recieve the 25% 1k bonus the following month. Why not wait until the end of that tax yr say mar 19 to deposit the other 4k, cant see the rate increasing from 0.5% compared to saving the 4k elsewhere during that tax yr.
    Originally posted by matty_544
    Different strokes for different folks - some will want to buy their first property during 2018/19 for example, but if you're saving in a cash LISA beyond the end of 2018/19 then yes, you can earn better interest elsewhere (assuming nothing significantly better than the Skipton one turns up) and top up the LISA at the end of the year.
    • Ed-1
    • By Ed-1 17th Aug 17, 1:52 PM
    • 1,938 Posts
    • 1,034 Thanks
    Ed-1
    Thanks another question relating to LISAs

    Regarding the next tax yr in April 18, ive read ppl will pay in April 18 another 4k to recieve the 25% 1k bonus the following month. Why not wait until the end of that tax yr say mar 19 to deposit the other 4k, cant see the rate increasing from 0.5% compared to saving the 4k elsewhere during that tax yr.
    Originally posted by matty_544
    You also need to bear in mind that you'll get the bonus quicker from next tax year as it's paid on a rolling monthly basis rather than at the end of the tax year. So you'll get growth on the bonus too.
    • eskbanker
    • By eskbanker 17th Aug 17, 2:39 PM
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    eskbanker
    You also need to bear in mind that you'll get the bonus quicker from next tax year as it's paid on a rolling monthly basis rather than at the end of the tax year. So you'll get growth on the bonus too.
    Originally posted by Ed-1
    Yes, the poster is bearing that in mind already (hence the first line of the question) but it only takes 0.625% interest on £4K to outperform the 0.5% on the bonus-inclusive £5K, which should be readily achievable!
    • NevvyC
    • By NevvyC 18th Aug 17, 1:47 PM
    • 37 Posts
    • 1 Thanks
    NevvyC
    Does anyone know here what a typical 'salary multiplier' mortgage providers offer ? Just trying to work out what salary I might need to work for in order to buy a certain value property ...

    For example, Barclays were offering a 4x multiplier for a certain scheme (but imagine there are far better offers out there if you trump up more deposit £££)

    Thanks for any insight in advance !
    Originally posted by NevvyC

    Just wondering if anyone is able to shed any light / experience on this ...

    As I'm currently wishing to purchase a property ASAP (so am weighing up schemes like Barclays H2B vs selling my business and using those funds as deposit - something I'd rather not do! vs waiting until end of May 2018 where I will have (hopefully) put 4K into my LISA pre-April 5th & 4K post-April 5th along with a H2B transferred in during March '18 totalling around 12K including the govt bonuses...)

    Salary may be a bit of an obstruction at the moment (but I'm working on it...) and could trump up a 10% deposit selling my business in a pretty short space of time ; *SO* another question is... Are there any mortgage lenders that will take a 10% deposit ?? (Clearly I'd have to do something about the monthly repayments by increasing my salary or getting a tenant in etc. but just seeing what my options are!) Any help is much appreciated
    • eskbanker
    • By eskbanker 18th Aug 17, 2:34 PM
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    eskbanker
    As this isn't really specifically an ISA/tax-free savings matter, you'd probably be better posting on the mortgages & endowments board and/or reading the articles in the main MSE section on mortgages, including the 'how much can I borrow?' calculator.
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