Cash lisa

makemerich12

Anyone have one? I've held one with Newcastle building society since 2019 paying me 3% interest. I had it because i thought it could help me buy a house but i've since read that it can only be used on new builds etc not a run down house for 50k.

I'm thinking of taking it out and putting into a saving account that would pay me 5% even though i'd lose 25% i'd make that back quick and can use any time...advice? 

eskbanker

makemerich12 said:

I had it because i thought it could help me buy a house but i've since read that it can only be used on new builds etc not a run down house for 50k.

Where did you read that?  It's not true, so best not to make regrettable decisions off the back of misunderstandings....

makemerich12

eskbanker said:

makemerich12 said:

I had it because i thought it could help me buy a house but i've since read that it can only be used on new builds etc not a run down house for 50k.

Where did you read that?  It's not true, so best not to make regrettable decisions off the back of misunderstandings....

is it not? so if i found a house for say 50K needing work i could use it? either way i think i've going transfer it to moneybox who pays more

lohr500

If you are still planning to buy a house in the next few years and you meet the criteria for using your LISA against a house purchase ( details here : https://www.moneysavingexpert.com/savings/lifetime-isas/ ) then why not transfer your Newcastle BS LISA to Moneybox.

At least then you will get 4.4% for 12 months instead of the 3% from Newcastle BS.

Especially worth keeping the LISA if you can add another £4000 for this year if you haven't done so already. In doing so you will then get a £1000 added to it by the Govt.

eskbanker

makemerich12 said:

eskbanker said:

makemerich12 said:

I had it because i thought it could help me buy a house but i've since read that it can only be used on new builds etc not a run down house for 50k.

Where did you read that?  It's not true, so best not to make regrettable decisions off the back of misunderstandings....

is it not? so if i found a house for say 50K needing work i could use it? either way i think i've going transfer it to moneybox who pays more

Yes, you can use it towards any first-time purchase of a UK residential property valued at up to £450K (no minimum value!), as long as you use a mortgage to support the purchase.

https://www.gov.uk/lifetime-isa

MX5huggy

makemerich12 said:

Anyone have one? I've held one with Newcastle building society since 2019 paying me 3% interest. I had it because i thought it could help me buy a house but i've since read that it can only be used on new builds etc not a run down house for 50k.

I'm thinking of taking it out and putting into a saving account that would pay me 5% even though i'd lose 25% i'd make that back quick and can use any time...advice? 

I think you are underestimating the damage 25% loss of value would have compared with a 2% improvement in interest rate.