Lifetime ISAs guide

eskbanker

Azamfb wrote: »

I want to know if I use only day half the balance to use as a mortgage deposit then would the isa still be open and would I then get the money when I’m 60?

Effectively, yes - you can access the money any time but are penalised at 25% of withdrawals when under 60, except if for a first-time property purchase (more than a year after opening).

So, if you don't need the whole balance for your first property purchase then you just withdraw what you need and the rest stays in the account until or unless you choose to withdraw it, either at 60 or by paying the penalty before then....

lisa445

How would it work if I open a lifetime ISA, pay in to it and then after a few months I move overseas for 1-2 years? I understand I can't pay in to the ISA while living overseas but will I earn the bonus and interest on the money already in there, and can I come back and continue to save in to it? Thanks

Alexland

lisa445 wrote: »

How would it work if I open a lifetime ISA, pay in to it and then after a few months I move overseas for 1-2 years? I understand I can't pay in to the ISA while living overseas but will I earn the bonus and interest on the money already in there, and can I come back and continue to save in to it? Thanks

Any money you contribute within the tax year you leave will still get a 25% bonus (even if the bonus is added in the next tax year). Your account will continue to earn interest however you will not be able to make new contribution(s) until you become a UK resident again. Have a talk with your provider incase they have any additional restrictions.

https://www.gov.uk/individual-savings-accounts/if-you-move-abroad
https://www.gov.uk/government/publications/rdr3-statutory-residence-test-srt

Alex

SarahB89

I have a Skipton LISA and am in the process of buying a house. The solicitor has asked how much I want to request from it. I'd like to take all of it (plus the interest that's pending, due to be paid in a few weeks) and then close the account. Can I just ask that they take the full amount including the interest? Or does the solicitor need to request a set amount and I have to transfer the interest out (at a penalty) later to close it? The solicitor doesn't seem to have dealt with LISAs before so isn't sure.

Alexland

SarahB89 wrote: »

I have a Skipton LISA and am in the process of buying a house. The solicitor has asked how much I want to request from it. I'd like to take all of it (plus the interest that's pending, due to be paid in a few weeks) and then close the account. Can I just ask that they take the full amount including the interest? Or does the solicitor need to request a set amount and I have to transfer the interest out (at a penalty) later to close it? The solicitor doesn't seem to have dealt with LISAs before so isn't sure.

Skipton provide guideance including the Buyer and Conveyancer declaration forms to download.

https://www.skipton.co.uk/mortgages/first-time-buyers/using-your-lifetime-isa

As you can see the Conveyancer form has a field to say "My client wants to withdraw £x from their Lifetime ISA".

The form does not provide an option to withdraw the full amount including closing interest balance. It may be worth your solicitor contacting Skipton to confirm if they do support this (probably) and, if so, how they would like to see the form completed.

Even if you leave a balance in your LISA there is no need to withdraw the money - some of us are using LISAs for long term S&S investment until age 60.

Alex

SarahB89

Thanks, but I have a further decade in which I could open a new LISA if I wanted it for pension purposes, at the moment I have greater need for the cash in hand. I've already given the forms to the solicitor, we'd left the amount blank as it was pending a HMRC bonus which has now been paid.

Mattmurch

I am seeing everybodys opinions and facts on the LifeTime ISA, what i am struggling to find is what banks actually offer the LifeTime ISA? If anybody knows of banks planning to offer them or banks people have actually opened LifeTime ISAs with.

Many thanks

bowlhead99

Mattmurch wrote: »

I am seeing everybodys opinions and facts on the LifeTime ISA, what i am struggling to find is what banks actually offer the LifeTime ISA? If anybody knows of banks planning to offer them or banks people have actually opened LifeTime ISAs with.

Many thanks

You'll find some of the main providers mentioned in this thread and elsewhere on the forum or main site.

Meanwhile the following page was last updated in April and lists a bunch of providers:
https://www.which.co.uk/money/savings-and-isas/isas/lifetime-isas-ac6mf6s7r9d5#headline_9

There may be other better lists, but this one was on the first page of a Google search

No I don't know why I just googled something for you but it passed the time while queueing to buy a sandwich...

Chrisagreen316

What's everyone's opinion on Moneybox's Round-ups?

I thought it was a good idea until I realised you had to give your online banking details. I'm surprised people are doing this, given how much the banks harp on about NEVER disclosing your online information. How can they get around this?

masonic

Chrisagreen316 wrote: »

What's everyone's opinion on Moneybox's Round-ups?

I thought it was a good idea until I realised you had to give your online banking details. I'm surprised people are doing this, given how much the banks harp on about NEVER disclosing your online information. How can they get around this?

The Moneybox investing app (as opposed to the Radio 4 programme which is actually quite good) seems to be solving a non-existent problem in that those who don't have savings should not be investing their spare change in S&S, while those who do have savings (i.e. at least 3-6 months living expenses) should have more meaningful sums to contribute and can do so cheaper elsewhere.

If they really need your full login information, then they won't be able to do this for much longer as firms will be restricted to using Open Banking to access third party accounts later this year. Most banks have reluctantly permitted disclosure of login information to valid aggregation services in their T&Cs before Open Banking was widely adopted, but I doubt this will last much longer.