We want to hear about your Lifetime ISA (LISA) experiences

masonic

jal-money said:

Just posting to see what others think and more importantly if anyone has done similar before.
My husband and I are first time buyers, we intended to buy in cash, but just discovered 10 days before we were meant to complete that to use our LISA’s we needed a mortgage.
The GOV website does not say any minimum value for the mortgage and Money Saving Expert has a section saying there is no minimum value the mortgage needs to be.
Through my bank I have started an application which is due to be finalised tomorrow before being run through checks at the bank, where there is no minimum value the mortgage must be. 

This sounds crazy, but we’re enquiring about our mortgage loan being £150. 

The product being offered gives us £300 cashback, no set-up fee’s and will cost £7.50 for the early repayment fee once everything is done.

Although I have read that there is no minimum value required to utilise the LISA, has anyone else ever had such a low mortgage when using one? Or such a low mortgage in general and did they run into any problems? 

Thank you 

Sounds like a very good deal. I wouldn't worry about the size of the mortgage or how long it is held. It is a tick-box exercise. Your conveyancer will need to be convinced you have met the criteria and will sign a declaration to that effect. So if they are convinced, you should have no trouble.

jal-money

fistfulofsteel said:

jal-money said:

Just posting to see what others think and more importantly if anyone has done similar before.
My husband and I are first time buyers, we intended to buy in cash, but just discovered 10 days before we were meant to complete that to use our LISA’s we needed a mortgage.
The GOV website does not say any minimum value for the mortgage and Money Saving Expert has a section saying there is no minimum value the mortgage needs to be.
Through my bank I have started an application which is due to be finalised tomorrow before being run through checks at the bank, where there is no minimum value the mortgage must be. 

This sounds crazy, but we’re enquiring about our mortgage loan being £150. 

The product being offered gives us £300 cashback, no set-up fee’s and will cost £7.50 for the early repayment fee once everything is done.

Although I have read that there is no minimum value required to utilise the LISA, has anyone else ever had such a low mortgage when using one? Or such a low mortgage in general and did they run into any problems? 

Thank you 

I'd be very interested to hear how you get on. I have a huge amount of money stuck in a LISA and am about to buy into my partner's house. I assumed I wouldn't be able to get a mortgage (and therefore forced to buy in cash, which I have the funds to do) due to having very little recent income, but if the mortgage can be so tiny surely someone would lend it to me?

Mortgage providers do put a lot of focus on your current income, but it’s worth a look. If you were intending to pay off the mortgage with savings very quickly after getting it, and getting a very small one yourself, mortgage providers might be able to assist with that. No harm in contacting ones to see. 

MrFrugalFever

MoneyBox LISA very easy to work with and easy to transact when solicitor details supplied for withdrawal for first property purchased. Solicitor charged a small fee for withdrawal from them. Quick process (in comparison to everything else relating to property purchase!).

eskbanker

MrFrugalFever said:

MoneyBox LISA very easy to work with and easy to transact when solicitor details supplied for withdrawal for first property purchased. Solicitor charged a small fee for withdrawal from them. Quick process (in comparison to everything else relating to property purchase!).

How much exactly?  The conveyancer fee was capped at £60 (£50+VAT) in the HTB ISA rules but wasn't specified in the LISA equivalent, and, although some have reported the same fee being charged for LISAs, £100+VAT was mentioned exactly two years ago on the first page of this thread:

https://forums.moneysavingexpert.com/discussion/comment/80009631/#Comment_80009631

MrFrugalFever

£50 + VAT to be exact.

jungleboy123

The Goverment is consulting on a new lifetime ISA without the withdrawal penalty. I would really want to find out if Martin Lewis will be campaigning to ensure the existing product can be changed on that basis?

If thats not the case at least give us an option to transfer to the new lifetime ISA if it ends up being better than the one we are on now.

WillPS

jungleboy123 said:

The Goverment is consulting on a new lifetime ISA without the withdrawal penalty. I would really want to find out if Martin Lewis will be campaigning to ensure the existing product can be changed on that basis?

If thats not the case at least give us an option to transfer to the new lifetime ISA if it ends up being better than the one we are on now.

He is: https://www.moneysavingexpert.com/news/2025/12/martin-lewis-lifetime-isa-chancellor-budget/

But I wouldn't hold out much hope, most of his campaigning and predicted victories on this have (unfortunately) come to nought, so far.

eskbanker

jungleboy123 said:

The Goverment is consulting on a new lifetime ISA without the withdrawal penalty. I would really want to find out if Martin Lewis will be campaigning to ensure the existing product can be changed on that basis?

If thats not the case at least give us an option to transfer to the new lifetime ISA if it ends up being better than the one we are on now.

The government will be consulting in early 2026, but I don't recall any meaningful commitment to eliminate the withdrawal penalty - the budget document simply stated:

The government will publish a consultation in early 2026 on the implementation of a new, simpler ISA product to support first time buyers to buy a home. Once available, this new product will be offered in place of the Lifetime ISA.

Once the consultation actually starts, then that's the time to raise questions like this, hence the chancellor declining to make any promises ahead of it starting, e.g. when pressed by ML:

Martin: "And if you have a LISA, do you think you'll be able to put the whole thing [in] to the new product if you wanted to?"

The Chancellor: "That's why we're having a consultation — to answer these questions."

jackalmf

Want to discuss people who are using the current LISA for retirement. I have a LISA with Hargreaves Lansdown, currently nearly 40 and have ~£9000 awaiting this current tax years bonus and was planning on maxing this each year up until the age of 50. I also have a regular stocks & shares ISA I contribute to normally monthly (Trading 212) in small amounts. I pick individual stocks and one of two funds but with the increased cost/fees moving forward does it make sense to stick with them (I'm not so sure!) What are the options and can I transfer to a different provider?

If I did transfer to a different provider, will the existing shares all trade over 'as is'?

What if the new provider does not have access to that companies shares etc?

Additionally, with the new LISA due at some stage and no withdrawal fees.. if I changed this account to a new LISA down the road (no exit fees) then sold it all - would any of the 25% be subsequently be clawed back?

Part of the reason I started this was to keep it simple.. and both rules.. and fees are changing all the time!

eskbanker

I pick individual stocks and one of two funds but with the increased cost/fees moving forward does it make sense to stick with them (I'm not so sure!) What are the options and can I transfer to a different provider?

If I did transfer to a different provider, will the existing shares all trade over 'as is'?

What if the new provider does not have access to that companies shares etc?

How near 40 are you? Your options are more plentiful before reaching that, as there aren't many LISA providers who allow over-40s to open an account, even just for transferring in.

You should be able to make an 'in specie' transfer to a new provider, but only if they offer your existing holdings, so you'd need to check that first - if they don't then you'd need to sell prior to transferring.

Additionally, with the new LISA due at some stage and no withdrawal fees.. if I changed this account to a new LISA down the road (no exit fees) then sold it all - would any of the 25% be subsequently be clawed back?

The budget announcement related to a new product specifically for first time buyers, but made no mention of replacing S&S LISAs - as above, the consultation process should be launched soon, so it ought to be clearer what's on the table then, and until that, it's just speculation.