Lifetime ISAs guide

LandOfConfusion

eskbanker wrote: »

There's no amortisation involved, bonuses are paid in full shortly after the relevant contributions are made.

Thanks. There was advice to that effect on Skipton's LISA page but it appears to have been taken down and replaced with text about the bonus being paid monthly, which was what had me concerned.

eskbanker wrote: »

And if you're using a cash LISA rather than a S&S one, you'd probably find it worthwhile to keep your £4K somewhere else

That's good advice, thanks! Skipton currently offers 1% so not exactly difficult to beat.

Pidge240283

I currently have a Lifetime ISA which I am paying into every month. At present I pay in £100 a month into the LISA so I get a bonus of £25 each month. Should I carry on with the LISA or would saving the same amount in a higher interest account over a year and then transferring the lump sum into the LISA be better?

masonic

Pidge240283 wrote: »

I currently have a Lifetime ISA which I am paying into every month. At present I pay in £100 a month into the LISA so I get a bonus of £25 each month. Should I carry on with the LISA or would saving the same amount in a higher interest account over a year and then transferring the lump sum into the LISA be better?

You would be best off paying a lump sum into the LISA late in the tax year if you can achieve a better net rate of interest elsewhere. The only exception would be close to the date you wish to make a withdrawal - in this instance you'd need to pay in a month or two before needing the money to allow time for the bonus to be credited.

snowqueen555

I am looking to transfer out my Hargreaves Lansdown LISA (all in cash) into another LISA so I can at least earn 1%

Has anyone actually been able to transfer in/out into a LISA as HL don't seem to offer this option, and I believe most places do not accept transfer in.

What a nightmare, not a not of choice or flexbility!

eskbanker

snowqueen555 wrote: »

I am looking to transfer out my Hargreaves Lansdown LISA (all in cash) into another LISA so I can at least earn 1%

Has anyone actually been able to transfer in/out into a LISA as HL don't seem to offer this option, and I believe most places do not accept transfer in.

What a nightmare, not a not of choice or flexbility!

Your reference to "at least earn[ing] 1%" suggests that you're looking at moving to a cash LISA rather than another S&S one - there are only three providers of cash LISAs and two of them accept transfers, while under ISA rules, HL can't prevent you from transferring out.

I'm not sure I'm understanding what's causing this to be a nightmare, what's stopping you from opening a cash LISA with Newcastle or Skipton and asking them to arrange the transfer from HL, job done....

snowqueen555

eskbanker wrote: »

Your reference to "at least earn[ing] 1%" suggests that you're looking at moving to a cash LISA rather than another S&S one - there are only three providers of cash LISAs and two of them accept transfers, while under ISA rules, HL can't prevent you from transferring out.

I'm not sure I'm understanding what's causing this to be a nightmare, what's stopping you from opening a cash LISA with Newcastle or Skipton and asking them to arrange the transfer from HL, job done....

Is it that easy? I never considered that they would do it all for me

Does is matter if I pay the £4k into HL 2019-20 and then transfer to the Skipton LISA?

eskbanker

snowqueen555 wrote: »

Is it that easy? I never considered that they would do it all for me

Does is matter if I pay the £4k into HL 2019-20 and then transfer to the Skipton LISA?

Yes and no, respectively. Personally I wouldn't rush into paying my 2019/20 LISA money in at the start of the tax year and would have it earning better interest than 1% elsewhere (not difficult!) until March 2020 (or until shortly before buying the first property if sooner).

SunShiney

I’m in a bit a of bind at the mo.
My sis and I are buying a house together. I opened and transferred £4K to a LISA in July 2018. My sister did the same to her own LISA but in August 2018. We didn’t think we’d find a property so quickly but have the perfect one now (offer accepted, solicitor instructed and mortgage application submitted all in less than a week!). We are all aiming to complete in late May (if all goes well)...certainly not July or August if we can help it.

Is there anything we can do? I’m not interested in the bonus I just want the £8K back. On the basis that it’ll be for a first time purchase, is there anyway to do this? We each also have help to buy ISAs we can claim on instead (we’ll actually get more bonus from them). Can I get our £8K from the LISA on the basis that we’re getting the bonus on the HTB ISA instead? Anything anyone can do to help 2 first time buyers not loose £500 would be appreciated!

Alexland

Property conveyancing often takes longer than expected but let's assume it happens in less than 12 months since the LISAs were opened.

If you can afford to make the property purchase without withdrawing then you could transfer to a S&S LISA where a suitable investment should grow at a rate above inflation and help with the cost of retirement.

Alternatively you could withdraw 3/4 of the money (and lose £375 of your original contributions) however you would still have the 25% bonus (£500) on 1/4 of the money. You could then use the withdrawn amount towards the property purchase and transfer the remaining to a S&S LISA to start investing for retirement.

Alex

lauraphils

I have been trying to find out the answer to this question everywhere...can anyone help?!

I have a LISA so am able to use the money in there to buy a house up to £450,000.
My partner (who I would be buying a house with) has a H2B ISA so can only buy a house up to £250,000.
We are both first time buyers so if we use both combine our ISA's to buy a house together, up to what value can we go to?

Anyone else in this situation know the answer?!