LISA Eligibility After Selling a Previous Property—Can I Use It for a Deposit?

4mphibi4n

Hi all, just looking for a bit of clarity.

I bought a property with a residential mortgage back in 2015, but sold it in 2020. Since then, I've been renting or staying with family and friends.

A mortgage advisor recently told me I could still be eligible for a first-time buyer mortgage. That got me wondering; could I also open a Lifetime ISA (LISA) and use it towards a deposit?

I’ve never had a LISA before, they were introduced after I bought my previous home. I wouldn’t be using it for retirement savings, so I want to make sure I can actually use it for a property deposit before I start putting money in.

Would really appreciate any insights or experiences—thanks in advance!

eskbanker

No, you can't use a LISA (without withdrawal penalties) for a property deposit if you've owned a property before.

DE_612183

There is a load of difference between a FTB Mortgage and FTB for LISA and Stamp Duty.

The mortgage is at the discretion of the lender.

The LISA and SD status is not.

Ch1ll1Phlakes

Nope. A LISA (with the bonus) can only be used towards a purchase if you are a first time buyer.

EDIT: Theoretically you could use it but you'd pay the 25% charge to put it towards the house payment