LISA for Mortgage AND Retirement?

Options
chocogrum
chocogrum Posts: 1 Newbie
First Anniversary
in ISAs & tax-free savings
Does anyone know if it's possible to use your LISA for mortgage and retirement? For example,
if I withdraw some of my LISA (+ bonus) to use for a mortgage, can I still keep saving until I'm 60 and get the bonus again when I retire? I've searched all over the internet and can't seem to find an answer to this specific question.

Comments

  • Ed-1
    Ed-1 Posts: 3,892 Forumite
    First Anniversary Name Dropper First Post
    Options
    chocogrum wrote: »
    Does anyone know if it's possible to use your LISA for mortgage and retirement? For example,
    if I withdraw some of my LISA (+ bonus) to use for a mortgage, can I still keep saving until I'm 60 and get the bonus again when I retire? I've searched all over the internet and can't seem to find an answer to this specific question.

    That's the whole point of a LISA - to give you Government contributions to help you save throughout your lifetime for specific events. Currently only house purchase and retirement (age 60) qualify for charge-free withdrawals but more could be added in in future.
  • jimjames
    jimjames Posts: 17,621 Forumite
    Photogenic Name Dropper First Anniversary First Post
    Options
    If you're using it for retirement you certainly wouldn't want to be using cash options in it, it should be the S&S/investment version.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • greenglide
    greenglide Posts: 3,301 Forumite
    First Anniversary Combo Breaker Hung up my suit!
    Options
    I don't believe that the OP's question has actually been answered
    if I withdraw some of my LISA (+ bonus) to use for a mortgage, can I still keep saving until I'm 60 and get the bonus again when I retire?
    My understanding is that you can withdraw some of the funds from a LISA for a house purchase but continue making contributions to use at age 60 or later.

    The bonus is added monthly after April 2018 so the concept of getting the bonus "again" doesn't exist. Each time you put money in you get the bonus on it. You then keep it (it isn't ring fenced or anything - money in a LISA is all the same) and can withdraw for a qualifying purpose. If you withdraw some or all for a non - qualifying purpose the bonus is claimed back plus a penalty charge.
  • Ed-1
    Ed-1 Posts: 3,892 Forumite
    First Anniversary Name Dropper First Post
    Options
    greenglide wrote: »
    I don't believe that the OP's question has actually been answered My understanding is that you can withdraw some of the funds from a LISA for a house purchase but continue making contributions to use at age 60 or later.

    The bonus is added monthly after April 2018 so the concept of getting the bonus "again" doesn't exist. Each time you put money in you get the bonus on it. You then keep it (it isn't ring fenced or anything - money in a LISA is all the same) and can withdraw for a qualifying purpose. If you withdraw some or all for a non - qualifying purpose the bonus is claimed back plus a penalty charge.

    Correct. You can have as many LISAs as you want but only one per tax year, unlike the Help to Buy ISA where you could only ever hold one and the bonus wasn't paid into the account as it was for a single purpose.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards