Lifetime ISAs guide

eskbanker

badger09 wrote: »

epm-84 wrote: »

Can anyone confirm do you get the government bonus on the interest if you have a Cash LISA?

If you meet the rest of the LISA's T&C, then yes. Why wouldn't you?

I disagree and say 'no' - the bonus is paid only on contributions to LISAs at the time they're made (within a month or two), so interest subsequently earned isn't relevant.

Edit: see https://www.gov.uk/guidance/lifetime-isas-for-isa-managers#payments

The following are current year payments into a Lifetime ISA:

• a payment of cash
  
• a transfer of shares from a Schedule 3 Save As You Earn (SAYE) option scheme, an approved profit-sharing scheme or a Schedule 2 Share Incentive Plan (read ISA subscriptions for more information)
  
• additional permitted subscriptions after the death of a spouse or civil partner of a Lifetime ISA account holder, irrespective of the type of ISA the deceased held or on closure of a Help to Buy ISA (read SA subscriptions and additional permitted subscriptions for more information)
  
• a transfer of investments, which satisfy the requirements to be Lifetime ISA investments, from an ISA other than a Lifetime ISA
  
• a transfer of cash from an ISA other than a Lifetime ISA
  
• defaulted investment subscriptions (you can read ISA subscriptions for more information)
  
• defaulted cash account subscriptions (you can read ISA subscriptions for more information)

The following are not current year payments:

• defaulted Lifetime ISA payments (you can read ISA subscriptions for more information)
  
• returned Lifetime ISA withdrawals after the failed first time residential purchase
  
• interest or growth within a Lifetime ISA
  
• government bonus payments
  
• various rebates, compensation or other payments described in managing an ISA
  
• cash or investments transferred to a Lifetime ISA from another Lifetime ISA

sully1311

FYI Skipton are passing on the full interest increase by the 17th for the Lifetime ISA.

Alexland

sully1311 wrote: »

FYI Skipton are passing on the full interest increase by the 17th for the Lifetime ISA.

Good old Skipton. I know people were critical for their low LISA rate however recent forum posts have shown this is a complex and probably expensive product for them to administer and they have treated their customers fairly in recent rate rises.

Alex

rachlikeswinter

sully1311 wrote: »

FYI Skipton are passing on the full interest increase by the 17th for the Lifetime ISA.

Excellent news :T

Marty_82

Hi.

I am hoping to use my Lifetime ISA for purchasing a house next year. I have recently become self-employed though and have been told by friends that I would need 3 years of accounts in order to be considered for a mortgage while being self-employed. My partner is in secure full-time employment though; would I be able to use my Lifetime ISA savings towards either a mortgage that they were applying for or even a joint morgage between us both?

Thank you for any helpful advice!

Alexland

Remember a LISA needs to be open 12 months after the initial contribution before it can be used, without penalty, for a qualifying property purchase.

Otherwise sure if buying with a partner you can each use your LISA account or HTB ISA bonus (but one person cannot use both) if you individually qualify under the relevant scheme rules. Even if the partner is not a FTBer you can use your LISA towards a joint purchase.

Alex

eskbanker

Marty_82 wrote: »

I am hoping to use my Lifetime ISA for purchasing a house next year. I have recently become self-employed though and have been told by friends that I would need 3 years of accounts in order to be considered for a mortgage while being self-employed. My partner is in secure full-time employment though; would I be able to use my Lifetime ISA savings towards either a mortgage that they were applying for or even a joint morgage between us both?

I don't believe that you can put your LISA money (without penalty) into a purchase only being made by someone else, so if you want to use your LISA you should be on the title deeds of the property and probably the mortgage as well.

However, if partner was going to be in a position to afford the mortgage single-handedly then surely adding a newly self-employed partner onto a joint mortgage shouldn't be a problem? Maybe worth discussing with a mortgage broker or posting on the mortgages board....

belfast_gal

Hi folks, need some advice please. I previously posted about transferring my cash LISA from Skipton into a S&S LISA with AJBell, this was completed a few weeks ago.

Today I've received an email from Skipton saying that they have received the bonus from HMRC and offering me 2 options:
- Leave the bonus payment in the account (not really an option because the account is closed)
- Withdraw the bonus payment, which is subject to 25% government charge.

Is this really right? It's a small amount of money I would lose but I'm not sure why I should be charged for this?

Thanks in advance.

Alexland

Tell them to transfer it to your new provider and make AJ Bell aware. No point paying a withdrawal charge if your intent was to use this money towards retirement.

Alex

belfast_gal

Alexland wrote: »

Tell them to transfer it to your new provider and make AJ Bell aware. No point paying a withdrawal charge if your intent was to use this money towards retirement.

Alex

Thanks Alex, I have emailed them back to request that. Seemed odd that they didn't offer it as an option though.