Money left over in the LISA

cmbrookes

I have £14,189 in my LISA and just seen a property which requires £12,500 deposit so if I use £12500 for my first home deposit what will happen to the remaining £1689?

Alistair31

Why not just pay the full amount towards the mortgage deposit?

cmbrookes

I have my reasons. It’s shared ownership. If you have an answer to my question that would be great.

MisterMotivated

I may be wrong, but I assume it will stay in the account, and you can withdraw it without penalty at the age of 60 (or before then, with a 25% penalty)

pjread

You're likely best off using it all to get a slightly lower mortgage, but I guess if not it'll stay there until you're 60 and can withdraw it (or you withdraw it earlier with the 25% penalty)

cmbrookes

Thanks everyone 

grumiofoundation

cmbrookes said:

I have £14,189 in my LISA and just seen a property which requires £12,500 deposit so if I use £12500 for my first home deposit what will happen to the remaining £1689?

As above it will stay in the account.

Your options are leave it where it is - if it is a cash LISA then would make sense to transfer it to a stocks and shares LISA.

or pay 25% penalty to withdraw - to then do with what you will.