LISA but not first time buyer

RodaCodex

So im looking into options to save for a house. Not a first time buyer as i had a share in a property with an ex when i was 18, but ended up transferring the deeds to her as the relationship ended.
LISA looks good, but does it have the same 'first time buyer' constraints as the Help to Buy ISA? Otherwise i presume i would pay the 20% penalty when it come to using the money for a house as it's not a 'first time' house?

(Not trying to get around the system or anything, just have a potential opportunity for myself and partner to save some money individually for a house buy, and im starting from square one, so this is a 'first time' buy for me!
She is a first time buyer, but i am technically not.

Any thoughts much appreciated!
(First time post so sorry if ive broken any rules!)

eskbanker

Sorry, unless you're saving for retirement then a LISA would be complete waste of time for you if you're not a first-time buyer, as you'd end up with less money than you started with, although if your partner is a first time buyer then there's nothing to stop her opening and using one, as long as she's under 40 and you won't be buying for at least a year.

Your options are covered in the two quick links above labelled 'top savings accounts' and 'how to start saving'.

aj23_2

As you're not a first time buyer, the only thing you could use a Lifetime ISA for is for use as a pension. And you can't open a Help to Buy ISA either.

Some banks offer Saving to Buy type accounts, but I'm not sure if they also restrict you to being a first time buyer when opening. If not, I'd suggest an ISA (if you can max out the allowance) or regular savers with high monthly caps like Yorkshire or N+P Building Societies.

Alexland

Also the penalty you would pay is 25% on withdrawal

badger09

aj23 wrote: »

As you're not a first time buyer, the only thing you could use a Lifetime ISA for is for use as a pension. And you can't open a Help to Buy ISA either.

Some banks offer Saving to Buy type accounts, but I'm not sure if they also restrict you to being a first time buyer when opening. If not, I'd suggest an ISA (if you can max out the allowance) or regular savers with high monthly caps like Yorkshire or N+P Building Societies.

Care to explain why you'd recommend an ISA to a non first time buyer?

Cash ISA rates are lower than savings accounts rates.
S&S ISA is not recommended for short term saving.

Regular Savers can provide rates up to 5%. Nationwide Flexdirect account pays 5% on up to £2500 for a year, and other current accounts are paying 3%. All considerably higher than any ISA.

Rich2808

And if you are a higher rate taxpayer a pension is better - as you get 40% tax relief not a 25% bonus.

It has its place - but is mostly only useful for first time buyers.