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    • elmintrude
    • By elmintrude 15th Oct 16, 8:28 AM
    • 2Posts
    • 0Thanks
    elmintrude
    HTB & LISA Savings "Pause"
    • #1
    • 15th Oct 16, 8:28 AM
    HTB & LISA Savings "Pause" 15th Oct 16 at 8:28 AM
    Hi There,

    Sorry if this has already been answered but I can't seem to find an answer anywhere.

    Both myself and my wife to be have HTB isas with a total saving of £3,600. I plan to move them both to LISAs when they launch as we meet the criteria for first time buyers.

    Now whilst this is going we're going to be getting married in Feb of next year and then budget seems to be getting a bit off track, Nothing outrageous, just £1,000 or so. I'm exploring ways to fill that gap and was thinking about using £1,000 of the ISA money but I don't know if it would spoil any bonus or incur any charges?

    I know that we're able to save more per year in the LISA so I'll be able to "catch up" again by saving extra following the wedding but does anyone know if withdrawing the money and not spending it on a house would mean we lose the bonus?

    Thanks.
Page 1
    • bowlhead99
    • By bowlhead99 15th Oct 16, 10:08 AM
    • 5,132 Posts
    • 9,063 Thanks
    bowlhead99
    • #2
    • 15th Oct 16, 10:08 AM
    • #2
    • 15th Oct 16, 10:08 AM
    The bonus is based on how much you have in there. So if you take £1000 out you will miss out on getting £250 free cash handout from the government on that £1000. If you really need £1000, borrow it on a loan or cheap credit card, or from family instead, or from anyone who won't charge you 25% interest. But you won't miss out on the bonus on the rest of the HTB ISA money you've got, which is staying in the ISA.

    When LISAs launch (after your wedding) they work a little differently so there would be a penalty charge, on top of the loss of bonus, if you were to also take out from that for another party later.

    You say you would be able to 'catch up' by simply paying more into the LISA later but you can only put £4k a year into that each, so assuming you are aiming to max out your free money (because 25% is a phenomenal amount of free money and it would be crazy to have any house deposit money anywhere else if you haven't maxed the LISA), the total amount that you'll be able to get a bonus on is going to be lower than if you had not taken anything out of it ever.

    Although, if you are only putting the odd hundred quid a month into the LISA because that's all you can afford, then you won't have any trouble with LISA limits.
    • TheShape
    • By TheShape 15th Oct 16, 12:27 PM
    • 452 Posts
    • 229 Thanks
    TheShape
    • #3
    • 15th Oct 16, 12:27 PM
    • #3
    • 15th Oct 16, 12:27 PM
    Is a long term 0% interest credit card an option for you?
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