Lifetime ISAs guide

GenRent90

How have people found it using the Lifetime ISA? Do most hit the £4k limit? If so, where do you put your money afterwards?

masonic

GenRent90 wrote: »

How have people found it using the Lifetime ISA? Do most hit the £4k limit? If so, where do you put your money afterwards?

How have we found it? For me, pretty much the same as using a S&S ISA. It's not a priority account for me, first comes pension (up to the matched employer limit and a little beyond), next S&S ISA, then LISA, then IFISA, then fixed rate savings accounts. All the while maintaining balances spread arround current accounts and regular savers.

eskbanker

GenRent90 wrote: »

How have people found it using the Lifetime ISA? Do most hit the £4k limit? If so, where do you put your money afterwards?

https://www.moneysavingexpert.com/savings/which-saving-account/ includes a helpful 'savings fountain' model that illustrates a sensible approach to where best to put money in a structured sequence, starting with HTB/LISA and showing options to consider once those have been filled....

Zorillo

My LISA will become my main "life savings" account, whilst the balance in it is currently lower than my emergency fund, that will change after April 5th.

I'm also increasingly coming around to the idea of using it as my emergency fund of last resort, and running my actual emergency fund down to around six months worth of funds rather than a year +.

My excess savings currently go towards paying for a new car; once that's accomplished I'll hopefully be in a position to consider investing more than just my LISA but with childcare costs and a mortgage, for the time being £4k represents a useful and convenient annual target for investment purposes.

Rgee184

Sorry if this has already been answered I had a quick flick through and couldn’t see it covered.
How long before the LISA maturity would it be safe to make an offer on a house?
I’m lead to believe that if my Lisa has been open 11 months and I make an offer then I would not actually need to access the money until after the 12 months (during exchange) because of the timeline of an average sale.
Is this correct? Will I have any problems applying for a mortgage if my money isn’t available right now but will be in a few weeks?

masonic

Rgee184 wrote: »

Sorry if this has already been answered I had a quick flick through and couldn’t see it covered.
How long before the LISA maturity would it be safe to make an offer on a house?
I’m lead to believe that if my Lisa has been open 11 months and I make an offer then I would not actually need to access the money until after the 12 months (during exchange) because of the timeline of an average sale.
Is this correct? Will I have any problems applying for a mortgage if my money isn’t available right now but will be in a few weeks?

If by maturity you mean the date the account is eligible for penalty-free withdrawals (there isn't a maturity date to speak of, even at the point you can use it for retirement at 60, it can continue to be held), then you need only ensure there is time to make your withdrawal before completion, or earlier if you are reliant on the money for an exchange deposit. Your provider can advise as to how long this process is likely to take.

binaryuniverse

Josephbrawn wrote: »

Yes many thanks! We have a little rainy day fund in case of that! Can I ask however will skipton who is my LISA provider not get funny that both me and my partner suddenly deposit a large sum right before the tax year finishes? Like ask questions where it’s from?

They can see where the deposit comes from. Unless you're walking through the door with a big fat wad of cash you're unlikely to have any problems.

If anything, they probably expect a large portion of their accounts to be treated in exactly this way. It's not going to be surprising to them.

pphillips

For those looking for an incentive to open a new LISA - Foresters Friendly Society are offering an M&S Gift Card when you apply online by 5th April 2019 according to the amount you want to invest:

A £75 M&S Gift Card for a new £100+ regular contribution Lifetime ISA once 3 months’ contributions have been received, or

A £100 M&S Gift Card for a new Lifetime ISA with a lump sum investment of between £500 and £999, once the lump sum has remained invested for 3 months, or

A £150 M&S Gift Card for a new Lifetime ISA with a lump sum investment of between £1,000 and £2,499, once the lump sum has remained invested for 3 months, or

A £200 M&S Gift Card for a new Lifetime ISA with a lump sum investment of between £2,500 and £3,999, once the lump sum has remained invested for 3 months, or

A £300 M&S Gift Card for a new Lifetime ISA with a lump sum investment of £4,000, once the lump sum has remained invested for 3 months.

https://www.forestersfriendlysociety.co.uk/saving-investing/lifetime-isa/at-a-glance/

masonic

pphillips wrote: »

For those looking for an incentive to open a new LISA - Foresters Friendly Society are offering an M&S Gift Card when you apply online by 5th April 2019 according to the amount you want to invest:

But what will it cost you to get out of the opaque and expensive investment product into something more sensible once you've received the gift card?

Alexland

masonic wrote: »

But what will it cost you to get out of the opaque and expensive investment product into something more sensible once you've received the gift card?

I agree the cost of getting involved in these types of products is greater than the cashback is worth.