Can you open a help to buy ISA and a LISA at the same time

themorganator4

Hi all,
Question is in the title.

Myself and my partner are thinking of opening both and saving in both because:

The interest rate in the help to buy is very good and if you withdraw you lose the 25% bonus but keep the rest.

The LISA allows us to use the money for both EOC deposit and mortgage deposit also taking advantage of the bonus included.

So we will be using the LISA for the deposit and the help to buy for fees etc (and deposit of there is enough left).

So can we open both at the same time?

Alexland

Yes you can both have both but only use one each (probably the LISAs as you suggest to avoid the withdrawal penalty) towards the purchase. If you don't use the HTB towards a purchase that's fine you will get good interest but no bonus but you are no longer eligible to hold a HTB ISA once you own property.

themorganator4

Thank you for your post but I was wondering if you can open both at the same time or can you only open 1 per tax year

Alexland

You are allowed to open and contribute to both during the same tax year as they are different types of ISA. The overall limit for ISA contributions in a tax year is £20k but you will hit the individual account limits first.

HTB is a type of Cash ISA so you would not be allowed to open another Cash ISA in the same year. However some HTB providers will also let you have a Cash ISA and HTB ISA in the same wrapper eg Nationwide.

Waynieoaks

Hi

So if my wife has a LISA and I have a help to buy ISA and we both meet the criteria can we both use as a deposit together but only one of us gets the bonus?

eskbanker

Waynieoaks wrote: »

Hi

So if my wife has a LISA and I have a help to buy ISA and we both meet the criteria can we both use as a deposit together but only one of us gets the bonus?

You can both benefit from the bonus if using one account each for a joint first-time property purchase. You'll need to go through the one-off HTB bonus claim process at the time of buying, whereas your wife will receive bonuses shortly after each contribution to her LISA....