We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Saving for a mortgage
bhindi
Posts: 75 Forumite
Hi,
I have my 30 year old stepson living with us whilst we assist him in paying down his debts. He is just about to make a last payment and will be ready now to start saving for a house he would like. He is able to save £1,000 a month.
I see the government do a Help to buy ISA, but I think he can only save £200 a month on that.
What other ways can we invest the remaining money in order to get him the maximum returns please.
Thank you in advance.
I have my 30 year old stepson living with us whilst we assist him in paying down his debts. He is just about to make a last payment and will be ready now to start saving for a house he would like. He is able to save £1,000 a month.
I see the government do a Help to buy ISA, but I think he can only save £200 a month on that.
What other ways can we invest the remaining money in order to get him the maximum returns please.
Thank you in advance.
0
Comments
-
If he is young enough get him to open a LISAAn answer isn't spam just because you don't like it......0
-
Once he has maxed out the help to buy ISA, paying the rest into four or five regular savings accounts will produce the best rates of interest at the moment. He will need to monitor the rates being paid as the accounts come up to being 12 months old.
Please congratulate your stepson on clearing his debts. It is a great achievement!The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.0 -
Ive just googled LISA. Is this a Help to Buy isa under a different name?... Can we open both types of Isa at the same time if its a different one?
Thanks0 -
Lifetime ISA is a different product than H2B ISA. Check out this link.https://www.moneysavingexpert.com/savings/lifetime-ISAs
If you hit the criteria LISA can be more generous with the bonus and how expensive a property can beAn answer isn't spam just because you don't like it......0 -
Looks like I can but he will only be able to use one of the bonuses from an Isa at a time.
Quote:
I've already saved into a Help to Buy: ISA. Can I take advantage of the Lifetime ISA?
Yes. The Lifetime ISA was launched on 6 April 2017 to help young people save flexibly for the long term towards a first home and retirement at the same time. Adults under age 40 will be able to open and save up to £4,000 each year into a Lifetime ISA and receive a 25% government bonus (paid annually at the end of the 2017-18 tax year and monthly for all future tax years). Individuals will be able to contribute to their Lifetime ISA and receive an annual government bonus on their contributions up to the age of 50. Savings invested in a Lifetime ISA can be withdrawn after age 60, or at an earlier age if they are being used to buy a first home worth up to £450,000 in the UK. There is a 25% government charge on all other withdrawals, recouping the government bonus and any interest on it plus a small additional charge on the individuals own savings.
During the 2017-18 tax year only, those with a Help to Buy: ISA will be able to transfer in the savings they have built up before 6 April 2017 to the Lifetime ISA, and still save an additional £4,000 into a Lifetime ISA in that year. The whole amount saved will benefit from the 25% government bonus. However, there is an initial minimum holding period of 12 months from account opening before withdrawals that can be made for a home purchase. It is recommended that you check with LISA providers for any restrictions they may have on transferring Help to Buy: ISAs.
You can chose to save into both schemes if you meet the eligibility criteria, however, you will only be able to use the bonus from one to buy a house.
More details on the features of the Lifetime can be found at: lifetimeisa.campaign.gov.uk.0 -
Although the short answer to that second question is yes, it's only possible to get the 25% government bonus on one of them for a first-time property purchase, not both, so evaluate carefully which makes most sense for him.Ive just googled LISA. Is this a Help to Buy isa under a different name?... Can we open both types of Isa at the same time if its a different one?
Read through the quick links further up the page entitled 'how to start saving' and 'top savings accounts' for further ideas....
Edit: longer answer posted while I was typing!0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.7K Banking & Borrowing
- 254.2K Reduce Debt & Boost Income
- 455.1K Spending & Discounts
- 246.8K Work, Benefits & Business
- 603.3K Mortgages, Homes & Bills
- 178.2K Life & Family
- 260.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards