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The best saving option

Hi,

I am a first time buyer and I’m looking to open an ISA or LISA. However, I may be going into a mortgage with my in-laws. Would I save more for my own deposite on a house when I come to get my own place by paying into the mortgage or would I be better off getting an ISA which the government pay 25%?

Comments

  • datlex
    datlex Posts: 2,252 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    If you are buying in the near future the HTB ISAs are good- you get 25% on bonus on completion plus 2% interest on any money you save.
    Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.
  • Grenage
    Grenage Posts: 3,222 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    I believe things like LISA only apply on your first home, so going on a mortgage with your in-laws could cost you money down the line.


    Friends and family don't generally mix with money, so think carefully.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    SHardy wrote: »
    Hi,

    I am a first time buyer and I’m looking to open an ISA or LISA. However, I may be going into a mortgage with my in-laws. Would I save more for my own deposite on a house when I come to get my own place by paying into the mortgage or would I be better off getting an ISA which the government pay 25%?

    If you're buying somewhere with your in-laws first then you won't be eligible for either the HTB ISA or LISA (except for retirement savings) when it comes to saving a deposit for your own place.
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