LISA access advice for Deposit...Help needed

A1Ex

An opportunity has arisen to buy a property I've had my eye on for a while as it has recently been reduced for the second time. I am keen to express an interest in purchasing, however my deposit funds are tied up in a LISA, accessible April 2020. I am not knowledgeable at all about house-buying and mortgages, so any help would be greatly appreciated!

Is it possible to make an offer now - but delay the actual purchase and mortgage payments? Of course I could evidence to the seller the sufficient funds. Or is it possible to take out a loan for a deposit to secure the house earlier, and if so could the LISA funds then be used upon completion towards the sale of the house, or are they only to be used on the initial deposit?

Is there any way around this, or am I flogging a dead horse?

TIA

Alex

Amoux

If you are relying on the LISA funds to purchase a house, frankly I think you are wasting your time consider buying a house right now.

I would wait until next year when you can access those funds. Of course you can withdraw your LISA funds now, but it would be hit by the 25% penalty.

In theory though you could delay the completion for as long as you wish. However, I think it's really asking too much to delay things until April 2020. I think they would have to be pretty desperate to accept.

Taking out a loan will not help you either. You have to prove your source of funds for the deposit and generally speaking mortgage lenders would not like this.

Don't worry, other opportunities will come.

RosieH25

Hi,

Me and my partner want to start looking at buying a house this time next year! He has opened a help to buy ISA, I was going to do the same thing however realized with my bank the help to buy ISA states 'The money goes towards the completion cost of buying your first home, not towards the deposit'. So I have looked at a LISA instead which I believe will be better for me as I definitely will be buying my first house after a year. I was wondering if I have a LISA and he has a Help to buy ISA can we use these both when it come to buying?

Thank you,

Look forward to hearing you're responses.

RosieH

diggingdude

Yes you can both use your bonuses however the price of the property will have to meet the conditions of both

8ofspades

RosieH25 wrote: »

Hi,

Me and my partner want to start looking at buying a house this time next year! He has opened a help to buy ISA, I was going to do the same thing however realized with my bank the help to buy ISA states 'The money goes towards the completion cost of buying your first home, not towards the deposit'. So I have looked at a LISA instead which I believe will be better for me as I definitely will be buying my first house after a year. I was wondering if I have a LISA and he has a Help to buy ISA can we use these both when it come to buying?

Thank you,

Look forward to hearing you're responses.

RosieH

Both the h2b ISA money and the bonus can be used towards your deposit btw, I know banks make it confusing. When you're ready to complete, you'll close your ISA when your solicitor tells you (I think a few weeks before can't remember 100% but they'll need time to claim the bonus and you won't want your purchase delayed.) - you'll transfer your deposit into another account and be given a closing statement which you give to your solicitor. Your solicitor will then claim the bonus on your behalf - you'll never see the bonus, the solicitor will just tell you when they have it. Then a couple of days before completion, you'll transfer your deposit to your solicitor. Hope that helps

https://www.helptobuy.gov.uk/help-to-buy-isa/faq/

A1Ex

Thank you, this confirmed what I already knew, just needed someone else to tell me. I'll just have to be patient!