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Lifetime ISA against mortgage deposit?
rxc737
Posts: 1 Newbie
Hi All,
I'm after some help please on how/when you can access the Lifetime ISA when buying a house, specifically on exchange or completion. Obviously I am a first time buyer, so apologies if any of this is wrong or unrealistic!
We (my partner and I) have recently had an offer accepted on a house and I have a LISA. I opened the LISA in May 2017 and so still have a number of months to go until I can access.
Due to this, it is likely that we will exchange contracts in the next couple of months (i.e. before the year is up on my LISA) but it is possible that we will actually complete after the anniversary of my LISA as the seller's haven't found a house themselves yet.
I am in a fortunate position in that I can just about make the deposit without the LISA bonus, but it will obviously help if I can access it. The sellers had numerous offers on the house, so I don't want to drag my heels or ask for a later exchange date for the bonus (admittedly I haven't sounded out the estate agent).
I can find a clear(ish) set of rules on how the Help-to-Buy ISA works pay-out wise (I think you can use against either the exchange deposit or mortgage deposit), but I am uncertain whether this is the case for the LISA. The Government guidance I can find just says it works in a similar way to the Help-to-Buy ISA, but nothing more definitive than that. The solicitor we are using is also unsure as they haven't seen the LISA in action before. I must admit that I didn't realise there were different deposits when buying a house...
Does anyone know whether the LISA can be used against the mortgage deposit, which I think will be payable just before completion?!
I believe I can withdraw my money from my LISA before the end of the tax year penalty free, so I will do this if I cannot use my LISA against anything other than the exchange deposit.
Thanks in advance for any guidance/thoughts.
I'm after some help please on how/when you can access the Lifetime ISA when buying a house, specifically on exchange or completion. Obviously I am a first time buyer, so apologies if any of this is wrong or unrealistic!
We (my partner and I) have recently had an offer accepted on a house and I have a LISA. I opened the LISA in May 2017 and so still have a number of months to go until I can access.
Due to this, it is likely that we will exchange contracts in the next couple of months (i.e. before the year is up on my LISA) but it is possible that we will actually complete after the anniversary of my LISA as the seller's haven't found a house themselves yet.
I am in a fortunate position in that I can just about make the deposit without the LISA bonus, but it will obviously help if I can access it. The sellers had numerous offers on the house, so I don't want to drag my heels or ask for a later exchange date for the bonus (admittedly I haven't sounded out the estate agent).
I can find a clear(ish) set of rules on how the Help-to-Buy ISA works pay-out wise (I think you can use against either the exchange deposit or mortgage deposit), but I am uncertain whether this is the case for the LISA. The Government guidance I can find just says it works in a similar way to the Help-to-Buy ISA, but nothing more definitive than that. The solicitor we are using is also unsure as they haven't seen the LISA in action before. I must admit that I didn't realise there were different deposits when buying a house...
Does anyone know whether the LISA can be used against the mortgage deposit, which I think will be payable just before completion?!
I believe I can withdraw my money from my LISA before the end of the tax year penalty free, so I will do this if I cannot use my LISA against anything other than the exchange deposit.
Thanks in advance for any guidance/thoughts.
0
Comments
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Hi,
I have the same issue here. Completion Date will be a couple of months after exchange of contracts date with anniversary of opening the LISA somewhere in between. Did you find out if the LISA can be used for mortgage deposit (just before completion) or only the exchange deposit?
Thanks for any help!0 -
The LISA can be used for either exchange deposit or mortgage depositHomeowner:j0
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Thanks Lolly88,
Do you have a source for that? For my own piece of mind!0 -
Have a glance at this https://www.moneysavingexpert.com/savings/lifetime-ISAsAn answer isn't spam just because you don't like it......0
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