We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Lifetime ISA - Penalty on withdrawing remaining funds after house purchase?
Options
sally_wightman
Posts: 1 Newbie
I'm looking into getting a LISA as I'm planning on buying a house in a few years time. My concern is if you can only use the money saved in a LISA for the deposit, what happens if you have money remaining in the account after you have paid your deposit? Do you have to pay the withdrawal penalty to take the remaining funds out? Therefore, is it wise to stop putting money in when you reach a certain amount?
0
Comments
-
sally_wightman said:I'm looking into getting a LISA as I'm planning on buying a house in a few years time. My concern is if you can only use the money saved in a LISA for the deposit, what happens if you have money remaining in the account after you have paid your deposit? Do you have to pay the withdrawal penalty to take the remaining funds out? Therefore, is it wise to stop putting money in when you reach a certain amount?
The money in lifetime ISA can only be withdrawn penalty free for house purchase (assuming fits criteria) or for retirement (can withdraw at 60 with no penalty). Any money you do not use for deposit you can either leave in for retirement (in this case is probably better to transfer to a Stocks and Shares LISA) or withdraw and pay withdrawal penalty. Normally this penalty is 25% meaning you would get back less than paid in (currently 20% until April due to Covid).
https://www.moneysavingexpert.com/savings/lifetime-isas/
1
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 350.9K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 243.9K Work, Benefits & Business
- 598.8K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards