Help to buy ISA & Lifetime ISA

another_andy · 15 May at 8:05AM

My daughter is in the process of buying her first house, she started a H2B ISA a few years ago and has £8800 in it, not including any bonus, she also started a Lifetime ISA and has maxed that last year and this current year, therefore has £8000 + the £2000 bonus in that one. Not realising that you can’t get the bonus on both, I’m guessing the best thing to go is use the LISA for the house purchase and not realise the bonus on the H2B or is there a better way to take advantage of both ISAs, she doesn’t want to take advantage of the pension opportunity with the LISA.

Thanks in advance.

Exodi · 15 May at 9:19AM

As you say, withdraw from the HTB ISA as there is no penalty and use the LISA. She can't use both and you've mentioned she wouldn't want to use the LISA for retirement (which is the only other use for it), so this is your only real option.

eskbanker · 15 May at 11:18AM

As above, using the LISA for the house is likely to be the best bet (it has a higher purchase price cap outside London too) but only if it's been open for at least a year when used.