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  • FIRST POST
    • MSE Helen Saxon
    • By MSE Helen Saxon 16th Mar 16, 5:06 PM
    • 75Posts
    • 42Thanks
    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 havenít already, join the forum to reply. If you arenít sure how it all works, read our New to Forum? Intro Guide.


    Thanks folks,
Page 52
    • Alexland
    • By Alexland 8th Nov 17, 8:45 PM
    • 656 Posts
    • 409 Thanks
    Alexland
    It's interesting to see some other providers such as Nationwide have been lobbying for an extension to the HTB ISA as they still don't feel comfortable with the LISA exit penalty.

    http://www.yourmoney.com/mortgages/nationwide-calls-extension-help-buy-isa/

    I think we are heading towards crunch time as the standoff between the government and financial institutions on the LISA.
    • binaryuniverse
    • By binaryuniverse 9th Nov 17, 6:36 PM
    • 462 Posts
    • 244 Thanks
    binaryuniverse
    Skipton's LISA is rising to a whopping 0.75% interest.

    It's an extra tenner on my £4000, I guess.
    • livlifelivs
    • By livlifelivs 12th Nov 17, 9:16 PM
    • 1 Posts
    • 0 Thanks
    livlifelivs
    We are first time buyers looking into saving for a house, my partner is over 40 so can't open a LISA but has opened a help to buy ISA instead.
    I am under 40 and a first time buyer also, I want to open a LISA can we use my LISA and my partners help to buy ISA in conjunction with each other so we can both claim the 25% bonus?
    • badger09
    • By badger09 13th Nov 17, 10:08 AM
    • 5,383 Posts
    • 4,624 Thanks
    badger09
    We are first time buyers looking into saving for a house, my partner is over 40 so can't open a LISA but has opened a help to buy ISA instead.
    I am under 40 and a first time buyer also, I want to open a LISA can we use my LISA and my partners help to buy ISA in conjunction with each other so we can both claim the 25% bonus?
    Originally posted by livlifelivs
    Yes you can.
    I'm a supporter of dunstonh
    • sonicology
    • By sonicology 14th Nov 17, 4:41 PM
    • 137 Posts
    • 533 Thanks
    sonicology
    I'm going to open a stocks and shares LISA in the next week or so and wondered if anyone had any advice regarding providers?

    I currently have a s&s ISA with iWeb and am happy with them but I don't think they'll be offering a LISA anytime soon so it looks like I'll have to look elsewhere. Seems that there's not a lot of choice which is disappointing, so I'll be picking between AJ Bell and H&L; AJ Bell have lower fees so I'm probably leaning towards them, but if H&L provide noticeably better service then I probably wouldn't mind paying the extra fees. I will be holding a mixture of Vanguard ETFs and individual US equities if that makes any difference.

    If anyone has any experiences good or bad with the above providers they would like to share then I'd be grateful for your input!
    • Amoux
    • By Amoux 15th Nov 17, 10:45 AM
    • 3 Posts
    • 3 Thanks
    Amoux
    I'm going to open a stocks and shares LISA in the next week or so and wondered if anyone had any advice regarding providers?

    I currently have a s&s ISA with iWeb and am happy with them but I don't think they'll be offering a LISA anytime soon so it looks like I'll have to look elsewhere. Seems that there's not a lot of choice which is disappointing, so I'll be picking between AJ Bell and H&L; AJ Bell have lower fees so I'm probably leaning towards them, but if H&L provide noticeably better service then I probably wouldn't mind paying the extra fees. I will be holding a mixture of Vanguard ETFs and individual US equities if that makes any difference.

    If anyone has any experiences good or bad with the above providers they would like to share then I'd be grateful for your input!
    Originally posted by sonicology
    Speaking from my own experience, Hargreaves was very quick setting up my LISA and transferring the HTB ISA over to it. They kept me informed, and escalated the process with my HTB provider. I have no complaints. However, my only reasoning for going with HL was that I transferred over to the LISA when it was first launched - I believe there were no other S&S LISA options at that time. I'm expecting that more cheaper providers will come on board next year, so right now I'm happy with HL but expect to transfer out at a later date. The difference in costs will be marginal, given that everyones portfolios are currently so small. It's also worth bearing in mind that HL have higher exit fees, whereas Youinvest allows you to transfer cash out to another LISA for free.

    TBH I would probably just go with whichever provider is cheapest both now and in the long term - which is probably AJ Youinvest.
    • Alexland
    • By Alexland 15th Nov 17, 2:06 PM
    • 656 Posts
    • 409 Thanks
    Alexland
    AJ Bell are ok and would usually work out cheaper long term especially if you are using most of the allowance and trading infrequently.
    • LilyB1
    • By LilyB1 15th Nov 17, 2:33 PM
    • 4 Posts
    • 2 Thanks
    LilyB1
    LISA Providers
    There's still only a few LISA providers - so a very restricted choice - especially on the cash LISA front (Skipton offer it but that's all for the moment)! I think the big players seem pretty skeptical of it, and will want to see it make a name for itself before they jump on the ship! On the Stocks & Shares LISA front the biggest names are AJBell and Hargreaves Lansdown, but might also be worth considering Nutmeg - they're newer - and on the 'robo-advice' side of the fence. I came across a comparison site that has a couple of LISAs on there - OFF3R worth checking them out (I can't post the link - sorry) - also have some pretty good content on their blog site 'Learn' on what to consider before investing in a LISA
    • Grevi1990
    • By Grevi1990 15th Nov 17, 3:57 PM
    • 1 Posts
    • 0 Thanks
    Grevi1990
    Hello,

    I'm looking for some advice.

    - I have a Santander HTB ISA and a Skipton LISA
    - My HTB ISA was opened in April 2016 has £5k in it (plus a small amount of interest). £3.4k of this was contributed before 2017/18 tax year.
    - My LISA has £1 in it and was opened in July 2017
    - I'm not looking to buy for a few years

    Clearly my plan is to transfer the HTB into the LISA prior to the end of the 2017/18 tax year.

    My question:

    My HTB ISA pays 4% interest. Am I allowed to transfer the £3.4k (plus interest) into my LISA in this tax year and top it up with £3,999 from another account, thereby retaining my HTB ISA? In the 2018/19 tax year, I would then pay £4k into the LISA while continuing to contribute to my HTB ISA to max out the interest (effectively using it as a regular saver). I am not sure if the rules allow this but it appears to be the best way of maximising the LISA bonus and interest.

    Thanks in advance for any help.
    • sonicology
    • By sonicology 15th Nov 17, 6:55 PM
    • 137 Posts
    • 533 Thanks
    sonicology
    Many thanks to everyone who replied, much appreciated!

    I'll do my due diligence but will likely go with AJ Bell, seems like they offer everything I need and will work out cheapest of the available options. Thanks again.
    • eskbanker
    • By eskbanker 15th Nov 17, 7:40 PM
    • 5,792 Posts
    • 5,674 Thanks
    eskbanker
    My HTB ISA pays 4% interest. Am I allowed to transfer the £3.4k (plus interest) into my LISA in this tax year and top it up with £3,999 from another account, thereby retaining my HTB ISA? In the 2018/19 tax year, I would then pay £4k into the LISA while continuing to contribute to my HTB ISA to max out the interest (effectively using it as a regular saver). I am not sure if the rules allow this but it appears to be the best way of maximising the LISA bonus and interest.
    Originally posted by Grevi1990
    Yes, the rules permit this, provided that the interest you transfer is whatever had been earned (but not necessarily paid) as at 5 April 2017, which Santander should advise as part of the transfer process....
    • Killing Position
    • By Killing Position 17th Nov 17, 3:28 AM
    • 3 Posts
    • 0 Thanks
    Killing Position
    Because Nutmeg have decided not to allow help to buy ISA transfers, I recently transferred my Nutmeg lifetime ISA into a Skipton lifetime ISA. I also took the opportunity to transfer my help to buy ISA into my new Skipton lifetime ISA. I'd like some advice with regards to how much more money I can put into the lifetime ISA between now and April.

    £4500 was in my help to buy ISA by April 2017
    £5950 was the final balance in my help to buy ISA, the extra £1450 being composed of £1400 of contributions and £50 of interest paid after April
    £101 was transferred from Nutmeg to Skipton, of which £100 was contributions and £1 was interest

    What is the maximum I can pay in to my lifetime ISA between now and the end of the tax year?
    a) £2500
    b) £2450
    c) Some other amount

    Thanks
    • eskbanker
    • By eskbanker 17th Nov 17, 8:40 AM
    • 5,792 Posts
    • 5,674 Thanks
    eskbanker
    The answer is c.

    You need to break down the £50 HTB interest into what was earned before this tax year, even if it was paid in this tax year - your HTB provider should be able to give this figure (and should already have provided it to Skipton as I understand it, to allow them to advise you of your remaining allowance).

    Once you have that, your qualifying LISA contributions this tax year will be £1400 plus the interest earned since 6 April 2017 (a subset of the £50) plus the £100 paid into Nutmeg.

    If that's too much faff, err on the side of caution and treat the £50 as all being earned in 2017/18, leaving £2450 remaining allowance....
    • tommysaver
    • By tommysaver 18th Nov 17, 10:16 PM
    • 132 Posts
    • 58 Thanks
    tommysaver
    I seriously need to pull my finger out with this. I'm sub <25 but may aswell max out the LISA -

    Am I right in thinking the Skipton one is just solid guaranteed money (Likely will do this option)

    But these others that offer the 'stocks and share' type LISA are more of a gamble i.i not guaranteed? (Calculated risk)

    Many thanks!
    • Rosiek1992
    • By Rosiek1992 19th Nov 17, 11:42 AM
    • 2 Posts
    • 0 Thanks
    Rosiek1992
    First time Buyers
    Hi Everyone! New to the forum but getting very confused with all the ISA talk!
    Me and my partner are yet to open an ISA and looking to buy in the next 2 years but not sure which account is best to open. We donít have a H2B ISA or LISA- we donít think weíll be able to get a property for under £250K where we live so the H2B wonít help us.
    Is it best to open both accounts each or shall we both just open a LISA?
    Sorry if this has been discussed Iíve tried to search through to find the answers!!

    Many thanks,
    R
    • eskbanker
    • By eskbanker 19th Nov 17, 12:07 PM
    • 5,792 Posts
    • 5,674 Thanks
    eskbanker
    Me and my partner are yet to open an ISA and looking to buy in the next 2 years but not sure which account is best to open. We donít have a H2B ISA or LISA- we donít think weíll be able to get a property for under £250K where we live so the H2B wonít help us.
    Is it best to open both accounts each or shall we both just open a LISA?
    Originally posted by Rosiek1992
    Best thing is to open a LISA each.

    In case you haven't already read it, you can't get the 25% bonus on a LISA and a HTB for a first-time purchase, so you effectively have to choose, and, since the LISA has the higher annual contribution and a higher property value cap, it's the obvious one to go for, as long as you won't be buying for a least a year.

    The interest rate on a cash LISA is poorer than a HTB though, so if you're saving more than £4K/year then using a HTB as an overflow purely for its interest rate is a possibility, although regular savers may also help here.
    • Rosiek1992
    • By Rosiek1992 19th Nov 17, 1:17 PM
    • 2 Posts
    • 0 Thanks
    Rosiek1992
    Thanks for your advise ‘Eskbanker’

    Regards
    R
    • Alexland
    • By Alexland 19th Nov 17, 1:51 PM
    • 656 Posts
    • 409 Thanks
    Alexland
    I have been pondering what to do with our S&S LISAs in year 3 when the balances will be around £15k each.

    From a platform fees perspective this is the point where moving from fund percentage fees to AJ Bell and HL capped fees for shares, ETFs and investment trusts of £30 or £45 respectively starts becoming attractive.

    I would probably do HL (never thought I would say that as I have always concluded they are too expensive - ColdIron might think I have gone soft) as I have other investments involving AJ Bell (Halifax SIPP) where I am already well over the FSCS limit. Also I know such a transfer would please Dunstonh who is always red flagging Nutmeg's losses.

    The only problem is that I don't buy shares anymore (too much concentrated risk / stamp duty), trusts have high >0.4% fees (and stamp duty again) and with ETFs then I cannot find one that offers a good enough diversification mix (most of the global ones seem 50% US heavy due to market cap). Unless I have overlooked one? That's why I usually stick to mixed asset OEIC and Unit Trust funds in my other accounts.

    Given the low value of LISAs it would probably cost too much in £10 AJB or £12 HL trade fees to hold more than one ETF holding. Unless I alternated each year but that's unlikely to be a good basis for asset allocation.

    The devil in me says put it all in an Emerging Market ETF to counterbalance how these countries are under represented in my other accounts but it would be a rollercoaster.

    Is anyone else thinking ahead to year 3+ and if so what's your strategy?

    Alex
    Last edited by Alexland; Yesterday at 8:53 PM.
    • funguy
    • By funguy 19th Nov 17, 3:41 PM
    • 518 Posts
    • 802 Thanks
    funguy
    I have been looking at a s+s LISA too with HL, AJ Bell or Nutmeg.
    I notice AJ Bell take their fees out the LISA itself whereas HL will take the fee out of your separate cash account. Unclear how Nutmeg take their fee. This will obviously make a difference to the tax free amount sitting in the LISA right?

    Im still unsure which provider to go with. Are there addtional risks with the safety of the money in Nutmeg as they are such a smaller company?

    Thanks
    • Alexland
    • By Alexland 19th Nov 17, 7:26 PM
    • 656 Posts
    • 409 Thanks
    Alexland
    Nutmeg deduct the fees automatically from the investment returns. We have been with them since April on the 4/5 fixed allocation risk (80% equities) and it's been surprisingly stable accumulation to £4150ish including fee deductions. Given their ongoing losses and increasingly hopeless business case I would only trust them up to the £50k FSCS limit and if they fail getting your money back could take ages like when an airline goes bust. Even if they are still around the percentage fees will just keep rising as the investment grows. I really like their service and investment approach (better robo than Moneyfarm) but have reluctantly concluded they are not our long term provider.

    AJ Bell would be most likely cheapest in the long term for most scenarios and I was reasonably happy with their YouInvest SIPP before I moved it to Halifax SD for fixed fees on funds. As the Halifax SD SIPP is underpinned by AJ Bell then that rules them out for our LISAs. But they could be good for you?

    I estimate that if the government continued to allow us to contribute to our LISAs to the age of 50 mine would be worth around £100k and my wife's around £150k at 60 assuming 2% above inflation growth. If they were with the same provider that would put us £150k over our 2x£50k FSCS limit (assuming it eventually gets increased for inflation) which is OK relative to our anticipated future wealth as we would have no other investments with HL and they are very financially secure. We would be similarly over the limit with Halifax SD / AJ Bell, Interactive Investor, Fidelity and Aviva too by then.

    So given those values in LISA year 3+ it would lead me to favour a capped (essentially fixed price) LISA from HL if only I could find a single ETF (or maybe investment trust) that I was happy with which is my real problem.

    Ps. HL taking fees outside the LISA could be quite useful between the ages of 50 and 60 as if you cannot contribute more you would have to keep manually selling holdings incurring a trade cost with AJ Bell to pay fees.

    Alex
    Last edited by Alexland; Yesterday at 9:14 PM.
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