Help to buy as a "cash lump sum"

Awiseowlwannabee

Hi

I was lucky enough to open a help to buy isa when they hit the market a few years ago and have now all but maxed it out in terms of the bonus. I was wondering if (on the understanding that i am at least 4 years away from my first property) i was thinking would it be a sensible idea to start maxing out a Cash LISA  with a view of using the bonus from that instead. I know i would be loosing my help to buy isa bonus but with the view that the bonus from the LISA is infinite (and assuming its 4 years AT MINIMUM till i make that purchase) but i know i can simply withdraw all the H2B cash with no penalty and use it as a cash reserve (with a interest rate FAR above average right now).

Would this be a sensible idea or is there a pit fall i havent seen?

Thanks

badger09

Yes that would be the sensible thing to do & no put falls. 

There is also nothing to stop you continuing to save into your HTB ISA in addition to your LISA if the interest rate is beneficial. 

You already know that you can only claim the bonus on one product for your house purchase.