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  • FIRST POST
    • MSE Helen Saxon
    • By MSE Helen Saxon 16th Mar 16, 5:06 PM
    • 75Posts
    • 44Thanks
    MSE Helen Saxon
    Lifetime ISAs guide
    • #1
    • 16th Mar 16, 5:06 PM
    Lifetime ISAs guide 16th Mar 16 at 5:06 PM
    Hi!

    This is the discussion thread for the



    Click reply below to discuss. If you haven't already, join the forum to reply.


    Thanks folks,
    Last edited by MSE Andrea; 14-05-2018 at 1:33 PM.
Page 87
    • JoeT947
    • By JoeT947 27th Jul 18, 8:15 AM
    • 1 Posts
    • 0 Thanks
    JoeT947
    Hi there,
    I!!!8217;m just about to purchase my first home and have very fortunately been gifted the deposit by parents. However I!!!8217;d like to set up the lifetime ISA to save for a second property. However if I will have to face a charge because of the early withdrawal penalty I won!!!8217;t use this. It just doesn!!!8217;t seem very clear as to wether that!!!8217;s the case or not.
    • Zorillo
    • By Zorillo 27th Jul 18, 8:20 AM
    • 436 Posts
    • 282 Thanks
    Zorillo
    It makes it abundantly clear that you can't do that, as you wouldn't be a first time buyer for the second property.
    Last edited by Zorillo; 27-07-2018 at 8:43 AM.
    • eskbanker
    • By eskbanker 27th Jul 18, 10:51 AM
    • 8,783 Posts
    • 10,068 Thanks
    eskbanker
    I'm just in the process of setting up a private pension and now I'm beginning to wonder whether I'd be better off going for one of these accounts instead. Thoughts?
    Originally posted by kacielmorgan
    There's some analysis of pros and cons at https://www.moneysavingexpert.com/savings/lifetime-ISAs/#pension2 that should help you decide....
    • Alexland
    • By Alexland 27th Jul 18, 5:28 PM
    • 3,878 Posts
    • 3,182 Thanks
    Alexland
    So having recently received last year's bonuses we go to contribute new money into our LISAs for this year to find HL have incorrectly recorded the transferred 2017 contributions as occuring this tax year so no further contributions are allowed. Another message sent.
    Originally posted by Alexland
    It's now Friday afternoon and HL haven't replied to my message from Monday morning so sent a new message to chase. If they want to seriously compete in the poor service market it would be good if they implemented the TopCashBack 'nudge' button.

    Alex.
    • belfast_gal
    • By belfast_gal 27th Jul 18, 10:01 PM
    • 13 Posts
    • 3 Thanks
    belfast_gal
    So thanks to advice on this forum I have now transferred my cash LISA to a stocks and shares LISA with AJBell. I wish I hadn't, because their website is so unintuitive and there is absolutely no advice for new customers how they go about choosing funds. My bad for not doing the research beforehand, but I know nothing about shares or funds etc, I assumed it was a managed fund. Whole load of hassle to get it transferred and now I don't know where to even start!
    • Alexland
    • By Alexland 27th Jul 18, 10:24 PM
    • 3,878 Posts
    • 3,182 Thanks
    Alexland
    So thanks to advice on this forum I have now transferred my cash LISA to a stocks and shares LISA with AJBell. I wish I hadn't, because their website is so unintuitive and there is absolutely no advice for new customers how they go about choosing funds. My bad for not doing the research beforehand, but I know nothing about shares or funds etc, I assumed it was a managed fund. Whole load of hassle to get it transferred and now I don't know where to even start!
    Originally posted by belfast_gal
    Ok having made this transfer then I assume you are planning to invest for 20+ years so you might want to consider the low cost Vanguard LifeStrategy 80 or HSBC Global Strategy Dynamic funds. Alternatively you might wish to consider the less volatile Vanguard LifeStrategy 60 or HSBC Global Strategy Balanced funds. If unsure then I suggest going for a lower risk one for now and then doing more research and reflection.

    You can get both funds on AJ Bell but here are the fund manager websites for more info:

    https://www.vanguardinvestor.co.uk/investing-explained/what-are-lifestrategy-funds

    https://www.assetmanagement.hsbc.co.uk/en/intermediary/investment-expertise/multi-asset/hsbc-global-strategy-portfolios

    Remember to keep enough cash in the account to pay the AJ Bell platform fees.

    Alex
    Last edited by Alexland; 27-07-2018 at 10:30 PM.
    • belfast_gal
    • By belfast_gal 30th Jul 18, 9:18 PM
    • 13 Posts
    • 3 Thanks
    belfast_gal
    Many thanks Alexland, I will look into both of those!
    Yes I'm saving for retirement so 20+ years (unfortunately - unless that EuroMillions ticket comes in!).
    • Alexland
    • By Alexland 31st Jul 18, 7:42 AM
    • 3,878 Posts
    • 3,182 Thanks
    Alexland
    It's now Friday afternoon and HL haven't replied to my message from Monday morning so sent a new message to chase.
    Originally posted by Alexland
    HL have finally replied to say they are thinking about the problem. This is so painful I can see why they have stopped accepting LISA transfers.

    Alex.
    • epm-84
    • By epm-84 1st Aug 18, 1:56 PM
    • 1,400 Posts
    • 4,335 Thanks
    epm-84
    Can anyone confirm do you get the government bonus on the interest if you have a Cash LISA?
    • badger09
    • By badger09 1st Aug 18, 2:20 PM
    • 6,436 Posts
    • 5,865 Thanks
    badger09
    Can anyone confirm do you get the government bonus on the interest if you have a Cash LISA?
    Originally posted by epm-84
    If you meet the rest of the LISA's T&C, then yes. Why wouldn't you?
    • epm-84
    • By epm-84 1st Aug 18, 2:38 PM
    • 1,400 Posts
    • 4,335 Thanks
    epm-84
    If you meet the rest of the LISA's T&C, then yes. Why wouldn't you?
    Originally posted by badger09
    I've not yet received a bonus on my interest paid in to my Skipton LISA in early June which is why I'm asking. You can pay up to 4000 in to a Lifetime ISA per year (not including interest) but can't get more than 1000 in bonuses per year, which doesn't make it crystal clear.
    • eskbanker
    • By eskbanker 1st Aug 18, 2:39 PM
    • 8,783 Posts
    • 10,068 Thanks
    eskbanker
    Can anyone confirm do you get the government bonus on the interest if you have a Cash LISA?
    Originally posted by epm-84
    If you meet the rest of the LISA's T&C, then yes. Why wouldn't you?
    Originally posted by badger09
    I disagree and say 'no' - the bonus is paid only on contributions to LISAs at the time they're made (within a month or two), so interest subsequently earned isn't relevant.

    Edit: see https://www.gov.uk/guidance/lifetime-isas-for-isa-managers#payments
    The following are current year payments into a Lifetime ISA:
    • a payment of cash
    • a transfer of shares from a Schedule 3 Save As You Earn (SAYE) option scheme, an approved profit-sharing scheme or a Schedule 2 Share Incentive Plan (read ISA subscriptions for more information)
    • additional permitted subscriptions after the death of a spouse or civil partner of a Lifetime ISA account holder, irrespective of the type of ISA the deceased held or on closure of a Help to Buy ISA (read SA subscriptions and additional permitted subscriptions for more information)
    • a transfer of investments, which satisfy the requirements to be Lifetime ISA investments, from an ISA other than a Lifetime ISA
    • a transfer of cash from an ISA other than a Lifetime ISA
    • defaulted investment subscriptions (you can read ISA subscriptions for more information)
    • defaulted cash account subscriptions (you can read ISA subscriptions for more information)
    The following are not current year payments:
    • defaulted Lifetime ISA payments (you can read ISA subscriptions for more information)
    • returned Lifetime ISA withdrawals after the failed first time residential purchase
    • interest or growth within a Lifetime ISA
    • government bonus payments
    • various rebates, compensation or other payments described in managing an ISA
    • cash or investments transferred to a Lifetime ISA from another Lifetime ISA
    Last edited by eskbanker; 01-08-2018 at 2:46 PM. Reason: Added link to HMRC guidance
    • sully1311
    • By sully1311 2nd Aug 18, 6:31 PM
    • 91 Posts
    • 29 Thanks
    sully1311
    FYI Skipton are passing on the full interest increase by the 17th for the Lifetime ISA.
    • Alexland
    • By Alexland 2nd Aug 18, 7:14 PM
    • 3,878 Posts
    • 3,182 Thanks
    Alexland
    FYI Skipton are passing on the full interest increase by the 17th for the Lifetime ISA.
    Originally posted by sully1311
    Good old Skipton. I know people were critical for their low LISA rate however recent forum posts have shown this is a complex and probably expensive product for them to administer and they have treated their customers fairly in recent rate rises.

    Alex
    • rachlikeswinter
    • By rachlikeswinter 2nd Aug 18, 8:08 PM
    • 70 Posts
    • 183 Thanks
    rachlikeswinter
    FYI Skipton are passing on the full interest increase by the 17th for the Lifetime ISA.
    Originally posted by sully1311
    Excellent news
    • Marty_82
    • By Marty_82 5th Aug 18, 1:51 PM
    • 1 Posts
    • 0 Thanks
    Marty_82
    Using my Lifetime ISA for mortgage in partner's name?
    Hi.

    I am hoping to use my Lifetime ISA for purchasing a house next year. I have recently become self-employed though and have been told by friends that I would need 3 years of accounts in order to be considered for a mortgage while being self-employed. My partner is in secure full-time employment though; would I be able to use my Lifetime ISA savings towards either a mortgage that they were applying for or even a joint morgage between us both?

    Thank you for any helpful advice!
    • Alexland
    • By Alexland 5th Aug 18, 2:12 PM
    • 3,878 Posts
    • 3,182 Thanks
    Alexland
    Remember a LISA needs to be open 12 months after the initial contribution before it can be used, without penalty, for a qualifying property purchase.

    Otherwise sure if buying with a partner you can each use your LISA account or HTB ISA bonus (but one person cannot use both) if you individually qualify under the relevant scheme rules. Even if the partner is not a FTBer you can use your LISA towards a joint purchase.

    Alex
    • eskbanker
    • By eskbanker 5th Aug 18, 3:33 PM
    • 8,783 Posts
    • 10,068 Thanks
    eskbanker
    I am hoping to use my Lifetime ISA for purchasing a house next year. I have recently become self-employed though and have been told by friends that I would need 3 years of accounts in order to be considered for a mortgage while being self-employed. My partner is in secure full-time employment though; would I be able to use my Lifetime ISA savings towards either a mortgage that they were applying for or even a joint morgage between us both?
    Originally posted by Marty_82
    I don't believe that you can put your LISA money (without penalty) into a purchase only being made by someone else, so if you want to use your LISA you should be on the title deeds of the property and probably the mortgage as well.

    However, if partner was going to be in a position to afford the mortgage single-handedly then surely adding a newly self-employed partner onto a joint mortgage shouldn't be a problem? Maybe worth discussing with a mortgage broker or posting on the mortgages board....
    • belfast_gal
    • By belfast_gal 6th Aug 18, 4:20 PM
    • 13 Posts
    • 3 Thanks
    belfast_gal
    Hi folks, need some advice please. I previously posted about transferring my cash LISA from Skipton into a S&S LISA with AJBell, this was completed a few weeks ago.

    Today I've received an email from Skipton saying that they have received the bonus from HMRC and offering me 2 options:
    - Leave the bonus payment in the account (not really an option because the account is closed)
    - Withdraw the bonus payment, which is subject to 25% government charge.

    Is this really right? It's a small amount of money I would lose but I'm not sure why I should be charged for this?

    Thanks in advance.
    • Alexland
    • By Alexland 6th Aug 18, 4:41 PM
    • 3,878 Posts
    • 3,182 Thanks
    Alexland
    Tell them to transfer it to your new provider and make AJ Bell aware. No point paying a withdrawal charge if your intent was to use this money towards retirement.

    Alex
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