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Does this make sense? Re H2B ISA and LISA for first time buying
BigBoss
Posts: 170 Forumite
My partner and I are saving for a house, and we currently have all of our money in H2BISAs. However, because of the low limit of H2B mortgages, we're planning on moving them to LISAs - either side of the April 5th cut off date (in order to get the bonuses for this year and next). I'm aware of MSE's advice about if you have over £5600 in your H2B then you may not benefit, but I feel it's irrelevant because we plan on buying a house over 250k.
This is the sensible strategy isn't it?
This is the sensible strategy isn't it?
0
Comments
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If you're planning to buy a house (outside London) valued above £250K then yes, you can't use HTB ISAs for that.
As to whether moving to LISAs is sensible, it's likely to be if you'll be buying in over a year (assuming you haven't opened them yet), and for no more than £450K, and that you're happy to commit to using the money towards this purchase (otherwise you'd face withdrawal penalties or leaving it until you're 60). Do you have less than £8K in each HTB ISA?1 -
Do you already have a LISA each open with a minimum balance, so that the clock is already ticking on the 1 year holding period? If not, I wouldn't delay doing so until March/April.
1 -
Both open - mine recently, partner's before, but yes buying in over a year (prob 18 months).eskbanker said:If you're planning to buy a house (outside London) valued above £250K then yes, you can't use HTB ISAs for that.
As to whether moving to LISAs is sensible, it's likely to be if you'll be buying in over a year (assuming you haven't opened them yet), and for no more than £450K, and that you're happy to commit to using the money towards this purchase (otherwise you'd face withdrawal penalties or leaving it until you're 60). Do you have less than £8K in each HTB ISA?
What happens if the house is more than 450k? Can we put the LISA money towards?
Yes we have less than 8k in both (just under in one).0
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