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Lifetime isa

hi, I’m looking at opening the lifetime isa for me and my husband because we’re looking at buying our house in 5 years time, my question is if we save the £8000 each year and have enough to pay for our council house outright instead of a mortgage, can we still do that or does it only work if you’re going to apply for a mortgage? We have quite a few years discount and the right to buy so it would only cost us around £50.000 to buy and I would prefer to buy without a mortgage, I hope this makes sense, thank you in advance for any advice.

Comments

  • Lifetime ISA can only be used to buy a property with a mortgage. However I don't believe there is any limit to the size of the mortgage - so just get the smallest you can. There is nothing 'wrong' with a mortgage, the cost of the interest over a couple years will be minimal compared to the LISA bonus-  not using the lifetime ISA to avoid getting one would seem shortsighted.
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