Generation Home Deposit booster

Sallyjaq

I am asking this on behalf of a young family member who is saving hard for a deposit to buy a home.  Has anyone used the Generation Home Deposit Booster account?  Are they reliable and a good way to get family to help you save?  thanks

grumiofoundation

I assume your family member already has a lifetime ISA?

https://www.moneysavingexpert.com/savings/lifetime-isas/
https://www.gov.uk/lifetime-isa

wjr4

No, don’t use them 

Sallyjaq

thanks for the replies.  I did some futher research myself and I see that it is about loaning a lump sum to someone to help them put down a deposit on a mortgage with Generation Home.  Not what we wanted.  Lifetime ISA a good idea so long as they are absolutely convinced they will use it for a home less than £455k, not always easy here in the South East!  Also only £8000 a year saving possible, so a mixed approach best.  There are also people like Coventry BS offering  good regular saver accounts with decent interest rates.

grumiofoundation

*450k not 455k!

LISA limit of £4000 is per tax year (not calendar) so they can pay in £12,000 per person (assume 2 people as you mention £8000 per year)  by April 2022. 

If* they are going to use LISA and want to maximise bonus the should look to open and fund before end of this tax year (new tax year starts April 5th - but don’t leave too late as some providers have earlier cut off). 

*if think 450k limit might be an issue and don’t want to risk having to pay penalty to access can always open today with £1 to get 12 month clock ticking, then when come to buy if is 450k or less can at least get one lot of bonus. 

csgohan4

grumiofoundation said:

*450k not 455k!

LISA limit of £4000 is per tax year (not calendar) so they can pay in £12,000 per person (assume 2 people as you mention £8000 per year)  by April 2022. 

If* they are going to use LISA and want to maximise bonus the should look to open and fund before end of this tax year (new tax year starts April 5th - but don’t leave too late as some providers have earlier cut off). 

*if think 450k limit might be an issue and don’t want to risk having to pay penalty to access can always open today with £1 to get 12 month clock ticking, then when come to buy if is 450k or less can at least get one lot of bonus. 

Can I clarify the LISA
https://www.gov.uk/lifetime-isa

usually can only put 4k per person a year, with the Government paying 25% of what you put in. 

grumiofoundation

csgohan4 said:

grumiofoundation said:

*450k not 455k!

LISA limit of £4000 is per tax year (not calendar) so they can pay in £12,000 per person (assume 2 people as you mention £8000 per year)  by April 2022. 

If* they are going to use LISA and want to maximise bonus the should look to open and fund before end of this tax year (new tax year starts April 5th - but don’t leave too late as some providers have earlier cut off). 

*if think 450k limit might be an issue and don’t want to risk having to pay penalty to access can always open today with £1 to get 12 month clock ticking, then when come to buy if is 450k or less can at least get one lot of bonus. 

Can I clarify the LISA
https://www.gov.uk/lifetime-isa

usually can only put 4k per person a year, with the Government paying 25% of what you put in. 

per tax year.

Hence ability to contribute £12,000 by April 2022 (bonus paid 5-7 weeks later)

4000 before April 5th 2021 (2020/21 tax year)
4000 at any point 2021/2022 tax year
4000 after April 6th 2022 (2022/2023 tax year)

So £15000 per LISA by end of May 2022. 

Alexland

grumiofoundation said:

4000 after April 6th 2022 (2022/2023 tax year)

Can I please join in with all these clarifications?

4000 from April 6th 2022 (2022/2023 tax year) as of course it's perfectly acceptable to contribute on 6th April.

grumiofoundation

Alexland said:

grumiofoundation said:

4000 after April 6th 2022 (2022/2023 tax year)

Can I please join in with all these clarifications?

4000 from April 6th 2022 (2022/2023 tax year) as of course it's perfectly acceptable to contribute on 6th April.

Ahhhh noooo, the dreaded clarified clarification