Lifetime ISA - different product for retirement vs first home?

ro1892

With lifetime ISAs, is it a different product depending on whether you're saving for retirement vs buying a home?

Reason I'm asking is that I want to open a Tembo lifetime ISA for retirement, but when I download the app and start filling out the forms it's asking me for details about the house I'm buying and when I'm planning to buy, and I can't skip this. I'm wondering if Tembo's lifetime ISA is only for first time house buying and cannot be used for retirement?

Albermarle

ro1892 said:

With lifetime ISAs, is it a different product depending on whether you're saving for retirement vs buying a home?

Reason I'm asking is that I want to open a Tembo lifetime ISA for retirement, but when I download the app and start filling out the forms it's asking me for details about the house I'm buying and when I'm planning to buy, and I can't skip this. I'm wondering if Tembo's lifetime ISA is only for first time house buying and cannot be used for retirement?

It is the same product with two possible uses.
Normally for house buying a cash LISA is recommended, and for retirement a Stocks and shares LISA .
However this is not a legal requirement, it is just good practice related to on what time scale you are looking at.

In any case even if you were planning to use it for a house purchase, most people would not know at the stage of opening a Lisa, any details of any future house purchase anyway.

pollyconstance92

It's the same product, but some apps will focus more on the first-time buyer aspect in the sign-up/onboarding flow or in the additional features offered.

You can view the provider as a "wrapper" over the underlying LISA product. It's still the same HMRC backed product, and as Albermarle says, can be used for retirement or a first-home purchase (eligibility rules apply). 

So I'd go for the best rate/product offering & don't worry about the sign-up flows! Whack some dud info in about the property and drop their team a message to feedback. 

ColdIron

• Tembo is an online digital mortgage broker focused on helping first-time buyers, movers & remortgagers overcome the affordability gap.

Probably not the best place to look for a retirement LISA

ro1892

So after contacting Tembo it turns out the Tembo Lifetime ISA can be used for retirement, however as it forces you to set up a monthly direct debit to pay in, it wasn't suitable for my needs