Having Both LISA And HELP TO BUY ISA

marklemmon15

Hi 
i cant seem to find this info anywhere on the forum, dont want to be repeating another thread so if this is discussed feel free to put me in the right direction... 

I have a help to buy isa which im paying the max per month and has been open just over a year 
I was thinking about opening a lifetime isa however ..... im curious because a lifetime isa no penalty for buying a first home yet the government bonus will be on me HTB Isa 
Will i be penalized for withdrawing the money to put towards purchasing my home? Will it be worth me just transferring it all to the LISA? 

Some advice on this will be grateful 

eskbanker

When buying your first property, you can't benefit from both a HTB ISA bonus and a penalty-free withdrawal from a LISA, you have to choose one or the other.

marklemmon15

So if I was to purchase my first home in 6months to a year Max would you suggest sticking to HTB or Transfer to LISA? Or is there a better suggestion to save for a home? 

eskbanker

marklemmon15 said:

So if I was to purchase my first home in 6months to a year Max would you suggest sticking to HTB or Transfer to LISA? Or is there a better suggestion to save for a home? 

If you're buying in less than a year then a LISA won't work, as you'd get back less than you paid in.

If you're buying in more than a year then a LISA will give you higher bonus-earning potential and a higher property value cap.