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    • hadders93
    • By hadders93 11th Jan 18, 4:11 PM
    • 52Posts
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    hadders93
    Switching to LISA
    • #1
    • 11th Jan 18, 4:11 PM
    Switching to LISA 11th Jan 18 at 4:11 PM
    Sorry for opening the thousandth thread on this.

    I currently pay into a H2B ISA and recently opened a LISA with Skipton as I'm not planning to buy a house for >1 year and the greater bonus and better bonus receipt options mean it's a more attractive option to me.

    Just had a few questions re: taking the plunge and transferring my H2B into the LISA:

    1) Given that far fewer banks have taken up and are offering a LISA, is there any reason to suspect it will be more difficult to use than H2B when buying a property?

    2) When entering the amount to transfer from the H2B, how do I calculate the outstanding interest that I've accrued over the last year (paid in May) on the H2B. Is it done automatically, or do I need to contact my H2B provider to get that information?

    3) My understanding is that this financial year I can transfer everything in my H2B (say 2000 for sake of argument), and then still have the 4000 LISA limit which I can also pay in before April. However, anything I've paid into the H2B since April 2017 when LISA was launched would count towards the LISA limit for this year, so say I'd paid 500 into H2B since then plus the 1 when opening the LISA, I could transfer in 3499 on top of my H2B transfer. Is that correct? What happens if you accidentally "overpay" into the LISA - does it just refuse the extra funds?


    Thanks for any help in advance!
Page 1
    • eskbanker
    • By eskbanker 11th Jan 18, 8:35 PM
    • 7,446 Posts
    • 8,027 Thanks
    eskbanker
    • #2
    • 11th Jan 18, 8:35 PM
    • #2
    • 11th Jan 18, 8:35 PM
    1) Given that far fewer banks have taken up and are offering a LISA, is there any reason to suspect it will be more difficult to use than H2B when buying a property?
    Originally posted by hadders93
    On the contrary, LISA should be much easier, as the 25% government bonus is added to the account as you go, so there is no need to claim it at the point of purchase, unlike with HTB.

    2) When entering the amount to transfer from the H2B, how do I calculate the outstanding interest that I've accrued over the last year (paid in May) on the H2B. Is it done automatically, or do I need to contact my H2B provider to get that information?
    Originally posted by hadders93
    Your HTB provider will calculate this in order to pay it, and will advise you and Skipton accordingly.

    3) My understanding is that this financial year I can transfer everything in my H2B (say 2000 for sake of argument), and then still have the 4000 LISA limit which I can also pay in before April. However, anything I've paid into the H2B since April 2017 when LISA was launched would count towards the LISA limit for this year, so say I'd paid 500 into H2B since then plus the 1 when opening the LISA, I could transfer in 3499 on top of my H2B transfer. Is that correct?
    Originally posted by hadders93
    Yes, your HTB provider should differentiate between funds that do count towards the 4K limit and those that don't, when making the transfer.

    What happens if you accidentally "overpay" into the LISA - does it just refuse the extra funds?
    Originally posted by hadders93
    I believe so, just like any other attempt to breach an annual ISA allowance.
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