Buying a house with a LISA

Afternoon

Hi there

I've recently received an inheritance and was wanting to put that towards my first property. I would also to use my LISA as well. So far I've been maxing it out (£4k). I've been looking at the smallest mortgages possible so I can use the bonus money from the government towards my first home. I've been looking at the government website and it states that it needs to be used with a mortgage, therefore, are there any issues you think could arise from doing so? I read somewhere that anything under £25,000 is not considered a mortgage but I've also heard otherwise, I was hoping to take out about £5,000 for my mortgage.

Thanks

grumiofoundation

Not sure what the minimum would be but why not just take out mortgage for say £25,000 and pay it off ASAP? Could either get a mortgage with no ERCs or just wait until the end of the fixed term (interest on £25k over 2 years @2% only £1000). 

If you are able to but in cash you might want to weigh up buying in cash vs cost of getting mortgage (fees etc) against LIsA bonus. You could also use the LIsA for retirement in this case (although would be worth switching to a stocks and shares LISA in this case). 

MovingForwards

You won't get a mortgage for £5k

As above, just take out a proper small mortgage and keep some cash back for doing the property to your taste, in case of emergency or just to have more money in the bank. Then pay the mortgage down when outside the ERCs.

Afternoon

MovingForwards said:

You won't get a mortgage for £5k

How do you know? When I've used websites to search for mortgages, they've let me look up £5k mortgages.

MovingForwards

Afternoon said:

MovingForwards said:

You won't get a mortgage for £5k

How do you know? When I've used websites to search for mortgages, they've let me look up £5k mortgages.

Have you looked at the criteria as they all say what their minimum is.