Can you use a LISA and H2B ISA to buy a house?

eskbanker

aj23 wrote: »

Are you implying that you'd get £307 from Barclay's at 2.58% on a £3,400 yearly deposit? (You've written £2,400, which is wrong for the first year). Because you wouldn't.

No, you're misinterpreting it - as per previous posts, OP already has a HTB, which will have £9500 in it by next March, hence different columns for 'year deposits' and 'total deposits'....

Having said that, the interest calculation is flawed, as it isn't as simple as £11,900 x 2.58% = £307 when the balance starts the year at £9,500, so as a crude approximation the average balance over the year will be more like £10,700, giving £276 interest.

aj23_2

It's just generally a bit muddled. It's not a good table.

Oasis1

aj23 wrote: »

It's just generally a bit muddled. It's not a good table.

Here's the table: https://we.tl/t-0WtPkN4cHr


I'd welcome any suggested edits you have. :money:

EhiEhizode

Alexland wrote: »

No each person can only use one of the products towards their property purchase so choose wisely and read the T&C's carefully. LISA bonuses are added into the account shortly after, and based on, the contribution and HTB ISA bonuses are claimed by the solicitor during the property purchase based on the closing balance.

You can only transfer or contribute up to £4k per tax year into a LISA.

Alex

Hey!!
I'd really appreciate some clarification on this comment.
I've got a LISA and a HTB ISA and I max them both out each year and month respectively. I thought I'd be able to use both to buy property and my understanding was that I'd only be able to get the 25% government bonus on one of them. I was planning to use the bonus on my LISA as I've been able to put more money into that account. From what you've said, will I not be able to do this then?

eskbanker

EhiEhizode wrote: »

Hey!!
I'd really appreciate some clarification on this comment.
I've got a LISA and a HTB ISA and I max them both out each year and month respectively. I thought I'd be able to use both to buy property and my understanding was that I'd only be able to get the 25% government bonus on one of them. I was planning to use the bonus on my LISA as I've been able to put more money into that account. From what you've said, will I not be able to do this then?

Just to be clear, you can only benefit from the 25% government bonus towards a first-time property purchase from either the LISA or an HTB but not both, but there's nothing stopping you from making a penalty-free withdrawal from a LISA (where funds will already have been boosted by the bonus) and also using the balance of an HTB ISA (without bonus).

Oasis1

A little update on this - my method seems to have worked out where I'm now still earning 2.5% on 12k+ in a Nationwide H2B ISA, and will have 12K in my Moneybox LISA next month. So enjoying the decent interest of the H2B, and still get the £3k government bonus through the LISA if I buy in 2020/21. All helping towards that deposit!