Small mortgage simply for unlocking LISA

oz0707

Are there any specialist providers or brokers out there who specialise in small mortgages simply for the purpose of unlocking LISA funds? Ideally with no minimum term so could be paid off straight after completion? I know this is a niche query but I imagine it is a situation that would become more common

Thanks

ACG

No broker will touch this. 
Small mortgage = small income.
Paying off a mortgage straight away looks bad on the broker with the lender. 

If you want to do this, your going to have to do it on your own I imagine. 

oz0707

Thanks I didn't know if there would be finance companies out there who would see the opportunity to make a decent return by charging fixed fee's for short term loans but I suppose the paperwork side would kill any advantage with Land registry and registering charges etc

Hoenir

Define small. 

oz0707

Hoenir said:

Define small. 

Small as possible really 5k? Just enough to unlock LISA. They could be charging like £1000 fee and it would still be worth it to the buyer.

400ixl

If for £5k that would suggest that you have only put £4k in and the government added their £1k.

So if the mortgage broker arranges a £4k mortgage and takes a £1k fee the you are only better off by £250 for a whole load of hassle.

May as well just take the withdrawal hit, or turn it into a Pension for later in life and not take the hit.

ACG

We will do it for £999...
Only messing. I dont think our fee structure would allow us to go that high. But the fact you want to clear it would be the biggest issue. 

Does it need to be a mortgage lender or can you get a friend to lend you the money and take a charge? Maybe speak to a conveyancing firm. 

oz0707

400ixl said:

If for £5k that would suggest that you have only put £4k in and the government added their £1k.

So if the mortgage broker arranges a £4k mortgage and takes a £1k fee the you are only better off by £250 for a whole load of hassle.

May as well just take the withdrawal hit, or turn it into a Pension for later in life and not take the hit.

I wasn't saying the LISA was only worth 5k. I was saying a mortgage for 5k would be ideal

silvercar

You could do it with an offset mortgage, take whatever seems reasonable for your income and the LTV of the property and then put all the money into the offset account. That way you will hardly pay any interest. You could leave the mortgage fully offset for as long as you want before redeeming it.