Remortgaging with lifetime ISA

db098

Hi,

Looking for some help on quite a specific case. I am looking to get my partner added to my mortgage when I remortgage at the end of my deal period. She has a Lifetime ISA and hasn't previously owned a property. Now, if we were to buy a new property I know that she would be able to use her Lifetime ISA as a deposit even though I'm not a first-time buyer. However, can she use her Lifetime ISA to reduce the loan amount for remortgaging?

From what I can tell, as long as the Lifetime ISA is used towards a deposit on a property then it's fine. In both cases above (new property vs remortgage) the money is doing the same job, reducing the loan amount. But perhaps there are some technicalities I'm unaware of which mean a 'deposit' is specifically for purchasing a new property.

Any help would be much appreciated. Otherwise I guess I will approach a mortgage broker (although I haven't always found them particularly knowledgeable, and I thought here would probably be a better shout).

Thanks.

K_S

@db098 Haven't seen this in practice, but looks like it may be possible (at least in principle) from the gov guidance.

db098

Thanks very much @K_S. I always get annoyed when I see people ask questions on forums only to be directed to an official website/link. I am now one of those people! Although honestly I have read the government Lifetime ISA conditions several times, but I had never seen this line. 

Now to read the Lifetime ISA T&Cs of the supplier! Yay!

db098

I'm returning to this thread with the hope of more advice. I have now tried to go through the process of remortgaging with a Lifetime ISA and hit a snag. I've applied with Nationwide, but their solicitors who are dealing with the remortgage are refusing to send the required forms to our lifetime ISA supplier (which the isa supplier requires to release the funds). The solicitor says it is a conflict of interest as they are acting on Nationwide's behalf. Independent solicitors won't deal with it because they say it must be the solicitors who are processing the remortgage who need to send the forms and receive the Lifetime ISA funds (which is correct according to our isa supplier).

A bit of a catch 22 and to be honest I'm not sure it'll be resolved. Just thought I'd post on here as a last resort for advice. Also, it may be useful for someone else to see this down the line.

Charlotte200494

Hi there, 

I am in the same situation myself currently.  Did you ever get this resolved? 

silvercar

Ask your solicitor who they would recommend you using. It could be that another partner in the same practice may be able to act for you,