LISA bonus

Nat-nat

My partner has a Lisa that is due to be 1 in September - we currently have 4K plus the bonus 1k from government. My questions is after the account turns one can we then deposit an additional 4K wait for the bonus to be deposited then leave our account with the 10k total for a house deposit ? And does the full amount need to be used towards the mortgage deposit ? Thanks

eskbanker

Nat-nat wrote: »

My partner has a Lisa that is due to be 1 in September - we currently have 4K plus the bonus 1k from government. My questions is after the account turns one can we then deposit an additional 4K wait for the bonus to be deposited then leave our account with the 10k total for a house deposit ?

The contribution limit is based on tax years, not 12-month periods from opening (which are significant for a different reason, i.e. penalty-free withdrawal), so another £4K can be paid in any time from a week on Saturday (6 April) onwards.

Nat-nat wrote: »

And does the full amount need to be used towards the mortgage deposit ?

Any amount can be withdrawn from the LISA towards a first-time property purchase, but anything withdrawn (before age 60) that isn't put towards the property value would be subject to a 25% withdrawal penalty.