Lifetime ISA buying into existing mortgage

MrsSmiff

Hi, I'm looking for some information on the use of LISAs as first time buyer.

My husband and I are desperate to buy our first house this year. We have had a LISA each which has been open over a year and we have used to save for (at the moment) just over a 5% deposit on a 200k house.

We have sent our credit files to a mortgage advisor who has said to get a mortgage we would need a 10% deposit due to a 2 yo default on my file. I have looked up and found defaults need to be at least 3yo to get a 95% mortgage.

My husband has a good credit file and would be in a position to take out a mortgage in his name alone. We are desperate to not pay rent anymore so this is something we are really interested in looking into.

My question is, If we did that, in a couple of years my credit file will be in much better order and I was wondering if we may be able to remortgage the house for me to then use my Lisa toward the house price. Does anyone know if this could be a feasible option?

Thanks very much!!

diggingdude

if you only have 5% together, then im guessing just 2.5% in one LISA? Do you have the rest of money to buy alone and does partner have a high enough income for mortgage

Pixie5740

MrsSmiff wrote: »

Hi, I'm looking for some information on the use of LISAs as first time buyer.

My husband and I are desperate to buy our first house this year. We have had a LISA each which has been open over a year and we have used to save for (at the moment) just over a 5% deposit on a 200k house.

We have sent our credit files to a mortgage advisor who has said to get a mortgage we would need a 10% deposit due to a 2 yo default on my file. I have looked up and found defaults need to be at least 3yo to get a 95% mortgage.

My husband has a good credit file and would be in a position to take out a mortgage in his name alone. We are desperate to not pay rent anymore so this is something we are really interested in looking into.

My question is, If we did that, in a couple of years my credit file will be in much better order and I was wondering if we may be able to remortgage the house for me to then use my Lisa toward the house price. Does anyone know if this could be a feasible option?

Thanks very much!!

No I don't believe you can use the LISA to buy into a property.

You say that you're desperate not to pay rent but what about mortgage interest? What's the difference in mortgage interest between a 95% LTV mortgage and a 90% LTV mortgage?

Would your husband even qualify for a large enough mortgage using just his income? Then there's the issue of finding a lender that will accept a spouse buying in their sole name instead of jointly.

MrsSmiff

We have probably 7% at the moment but have been told we would either need 5 or 10 nothing inbetween. The reason for wanting to buy now is the opportunity we have found in a house we have found and are very interested in.

My husband has been main earner and his wages would allow a mortgage the size we need. He's currently saved the 4k max in his isa and has the rest in a separate savings account, I only have a small amount in my isa at the moment due to having been on pt wages for a few years and not able to save as much.

I'm just trying to look at all the options at the moment and this was one we are questioning. Any advice or guidance is appreciated especially regarding the isa query if I buy into the property as there isn't much out there about it... not sure if that's because it's a no go.

DD265

I'd be tempted to try another broker to get a second opinion.

GoingOn30

If your deposit is so tight do you have additional cash saved for solicitors fees/survey/moving costs?
You will lose your LISA bonus if you get the property in only your husbands name and as mentioned above, not having a spouse on the mortgage will limit your choice of lenders meaning a potentially higher interest rate.
Sounds like you need to up your savings a bit more and get some more hours/ a second job.