When your deposit requires less than whats in your Lifetime ISA

dex91

Hi there,

I have about £19,000 saved in a Lifetime ISA, and several thousand in a normal savings account. I'm looking at properties >= £170k and getting a 90% mortgage which means I'll have a surplus of circa 3k in my LISA.

I have been looking up LISAs and it says quite generally they can be used for first time homes and then specifically deposits. My question is, I really dont want to leave that 3k there until m 60 and would rather put it towards a house.... can you put LISA money towards the cost of a property if the mortgage wont cover the property value?

Cheers,

Dex

grumiofoundation

Very confused by your post.

If you don’t want to leave the money in till you are 60 why don’t you put all the money that is in the LISA towards the deposit?

But then you talk about the mortgage not being able to cover the value?

masonic

dex91 wrote: »

I have been looking up LISAs and it says quite generally they can be used for first time homes and then specifically deposits. My question is, I really dont want to leave that 3k there until m 60 and would rather put it towards a house.... can you put LISA money towards the cost of a property if the mortgage wont cover the property value?

Presumably you mean: can you reduce the size of your mortgage and increase the size of your deposit so that all of the LISA is used? In which case, the answer is yes providing your mortgage isn't reduced to zero.

dex91

I'm looking at a property with a valuation of £170k. My lifetime ISA has £19k and I have £2k in a savings account I could put towards a house.

I was hoping to put down a 10% deposit (£17k) from the LISA, and using the additional money in the LISA (£2k) towards offering a price higher than the valuation.

The £170k valuation would be paid for by the mortgage and my deposit. I wanted to know if money left in the LISA (not put towards the deposit) could be put towards my extra £2k in my savings to provide an offer higher than the asking price? It will technically be used to buy my first home as per the LISA guidelines, just not towards the deposit.

grumiofoundation

dex91 wrote: »

I'm looking at a property with a valuation of £170k. My lifetime ISA has £19k and I have £2k in a savings account I could put towards a house.

I was hoping to put down a 10% deposit (£17k) from the LISA, and using the additional money in the LISA (£2k) towards offering a price higher than the valuation.

The £170k valuation would be paid for by the mortgage and my deposit. I wanted to know if money left in the LISA (not put towards the deposit) could be put towards my extra £2k in my savings to provide an offer higher than the asking price? It will technically be used to buy my first home as per the LISA guidelines, just not towards the deposit.

So you want buy a property for 172k with a 19k deposit (all from LISA) and a mortgage of 153k? Maybe I am missing something but still confused as to what you are actually asking?

masonic

dex91 wrote: »

The £170k valuation would be paid for by the mortgage and my deposit. I wanted to know if money left in the LISA (not put towards the deposit) could be put towards my extra £2k in my savings to provide an offer higher than the asking price? It will technically be used to buy my first home as per the LISA guidelines, just not towards the deposit.

Yes, you can buy the £170k property for £174k with a £153k mortgage and a £21k deposit (£19k from the LISA and £2k from other savings).