Lifetime ISA and Help to buy ISA charges....

realmanproject

I'm wondering if I will have to pay the government charge if I close my lifetime ISA before the year is up, but I AM using it to pay for a deposit?

I'm looking to buy soon, but not immediately. I'm thinking I should open up a Help to buy ISA AND a Lifetime ISA. The Help to buy if I end up buying in around 6 months time. The Lifetime ISA if I end up buying in a years time.

The question is do I end up with the government charge if I use the savings to buy a deposit, but I'm not eligable to get the bonus?

This is a rather urgent question as I'm 40 next week!

sully1311

Yes you will be charged as it needs to open for a year before funds can be used towards a deposit penalty free.

DD265

You could open it and put £1 in (or whatever the minimum is with the provider you go for) then you'd have until early April to decide whether to commit to the LISA for your deposit.