L-ISA With Poor Credit

Baughny123

Myself and my partner are looking to open a lifetime ISA to begin saving for our first home however my credit rating is poor. My debts are all due to be paid off within 12 months and I’m looking to re-build my credit but I’m worried if I pay so much into the LISA but cannot get accepted for a mortgage. Wanted to open a discussion to see if any others have advice or have been in a similar situation. 

eskbanker

If paying into a LISA effectively delays clearing up a damaged credit file, then I'd suggest focusing on the latter first, but much will depend on how much monthly surplus you have, how much you'd need to save to get onto the housing ladder, and when you'd anticipate that being viable.

masonic

You might get better responses if you focus on the likelihood of you getting a mortgage and direct that discussion to the relevant board, but it would require a lot more information about your past debt situation. Unless you are expecting to be able to save at a rate of >£4k per year, then opening a LISA is probably not that urgent.