Lifetime ISA

DrSpongey

Lifetime ISA - Do I deposit 4k now then again in new tax year?

Hi All,

I have question around Lifetime ISA?

I'm looking to potentially buy with my partner within Cardiff within the next 12-18months. She is not a first time buyer, I am. 

Not sure if anyone can advise here or point me in direction of.

I have a maxed out help to buy isa, cash isa savings and small amount in a lifetime isa of less than 1100. In Hindsight, I wish I had maxed out the LISA as I love had it for 6 years but was with with an ex and wasn't sure at the time if I would buy so continued with the Help to Buy at the time, maxing that out for 5 years from 2018. 

I've been doing some research on the drawbacks and advantages but I haven't contributed to my Lisa for a while, at the time the 25% penalty put me off unless I was absolutely sure was going to use it for deposit and the bonus so continue to contribute to the help to buy isa.

If I'm looking to buy within next 12-18months, I'm thinking of depositing 4k this tax year into my lisa and then again into new tax year next year to get 2k bonus. The limitation on Help to Buy ISA is obviously the price property cap of 250k and 3k bonus.

With this i. mind, would you recommend that I start/still make these contributions to lifetime isa now? Majority of my deposit would be from savings. With lifetime isa being smaller.

NB: There is significantly lot less in the lisa than help to buy which is maxed out and the rest of what would go towards a deposit etc would in majority be used from savings.

Given the curernt state of affairs in wjatvis the abysmall social housing crisis, it's very unlikely I will get something reasonable for less than 250k so that automatically rules out the bonus from the help to buy. With that in mind should I transfer into Lisa now to added to my already 1100 and max it out to get 2k bonus from two tax years. I guess it's all about risk.

Thanks,

Rob

masonic

You could wait until March, then add again after 5th April (later in the next tax year if you are still some way of buying). This will remove some risk if your plans change in the coming months.