Lifetime ISAs guide

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  • Hi all,

    Just joined the forum and wondered if someone may be able to confirm my plan will work with the Lifetime ISA for purchasing a house.

    I have set up 2 LISA's, for me and my partner, which I have put £1 in each to start the clock ticking.

    I intend, before the end of this tax year, perhaps March next year, to increase each to the full balance of £4000, thus qualifying for the £1000 bonus.

    The month after (into the 2018/19 tax year), I was planning to put an additional £4000 in each, as I have heard that the bonus is paid monthly after the 2017/18 tax year, so theoretically by this time next year I will have paid in £16000, and received £4000 in bonus?

    I will also be transferring in my HTB ISA which has qualifying funds of £4200 (made before 06/04/17), so a bonus of £1050 in addition, making a total of £5050 in bonus towards our first home.

    Can anyone confirm that this will happen or am I missing something?

    Thanks in advance
  • Bicker
    Bicker Posts: 11 Forumite
    That is correct, Drr.

    I'm in a similar position. 5k bonus in 12 months sounds too good to be true doesn't it!
  • System
    System Posts: 178,077
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    Does anyone know here what a typical 'salary multiplier' mortgage providers offer ? Just trying to work out what salary I might need to work for in order to buy a certain value property ...

    For example, Barclays were offering a 4x multiplier for a certain scheme (but imagine there are far better offers out there if you trump up more deposit £££)

    Thanks for any insight in advance !
  • Hello

    Sorry if this question has already been asked.

    I opened a hargreaves Lisa on 6th April 2017 to 'start the clock'. I then opened a Skipton cash Lisa on 6th June and have transfered my HL Lisa and my help to buy isa i had into the Skipton Lisa. I don't plan to buy until after April 2018

    Am I right in thinking that I'll be able to use the Skipton Lisa after 6th April 2018 or will I have to wait until June?

    Many thanks

    James
  • Does money held in cash on a stock/share Lisa count towards the £4,000 contribution?.
    If it does I'D Need to work out how much cash to leave for fees over the year out OF THE £4,000.
  • Ed-1
    Ed-1 Posts: 3,867
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    LODGER81 wrote: »
    Does money held in cash on a stock/share Lisa count towards the £4,000 contribution?.
    If it does I'D Need to work out how much cash to leave for fees over the year out OF THE £4,000.

    Anything you put into it counts as a contribution. Growth/bonus is not a contribution. Anything else is.
  • tg99
    tg99 Posts: 1,194
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    AJ Bell now offering a stocks and shares LISA. Don't think there is currently anyone else that enables you to invest in your own choice of funds / shares in a LISA other than Hargreaves?
  • Hi - 2 questions -

    1. Is it possible to open more than one Lifetime ISA and use them together towards buying a house? Or can you only use one of your Lifetime ISA accounts per house deposit/mortgage.

    2. Can you transfer money into the Lifetime ISA account monthly which adds up to £4000 over that year, or must the £4000 be transferred as a lump sum?

    Thanks in advance.
  • Katie-Jane
    Katie-Jane Posts: 33 Forumite
    Hi All,

    Quick question;

    I opened a Skipton LISA a few months ago and today I have opened one for my husband. He can't afford to save until he has cleared his debt. But there is nothing to stop me saving in it is there? They don't check where the money has come from right?

    Thanks
    Paid off £9k of debt & am now saving towards a house deposit :j
  • Katie-Jane
    Katie-Jane Posts: 33 Forumite
    Tilly,

    You cannot open more than one lifetime ISA in the same name, however if you are intended to buy a house with a partner they can open an ISA and both can be used towards the purchase.

    You can pay in monthly or as a lump-sum. For the first year the bonus will be paid in a lump-sum in April 2018. After that it will be paid in monthly.

    Hope that helps. :-)
    Paid off £9k of debt & am now saving towards a house deposit :j
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