H2B & lifetime ISA

dannim12345

Hello all,

Sorry it this has already be asked by another.

I have a H2b isa which has been open a year, theres over £4K in there. I have also opened a lifetime isa with Nutmeg to get the clock ticking on that (plan to transfer to another).

So my question is shall I continue to pay into the h2b? The max property value I could get the bonus at the moment is £250k so not even sure I would get it, due to looking at properties over that value (not by much), but the lifetime isa is £400k so that would help out. Is there a max I can transfer? Shall I transfer it early next year?

Also can I open a normal isa on top of these two isa's? Didn't think I could.

Hoping to buy next year

Thanks

eskbanker

The issue of why/when to transfer from HTB to LISA is covered extensively in the main MSE article and in various threads on the ISA board, but bear in mind that any 2017/18 HTB contributions would count towards the £4K annual LISA allowance for this year, unlike those from before 5 April 2017. You also need to think carefully about when you'd plan to buy 'next year', i.e. if it would be before or after April.

If you have a LISA and an HTB ISA then you can only open another cash ISA (if that's what you mean by a 'normal' one) if your HTB is with one of the few providers who offer split ISAs. You could open a S&S ISA but it would be unwise to do so if you're needing the funds for a purchase next year, so the best bet would be to put any surplus money into high-interest regular savers or current accounts.

dannim12345

Thank you!

bobobski

dannim12345 wrote: »

The max property value I could get the bonus at the moment is £250k so not even sure I would get it, due to looking at properties over that value (not by much), but the lifetime isa is £400k so that would help out.

Just to clarify, the maximum house value you can use the LISA for is £450,000, not £400,000.