Discussion
Being a non home owner. I have been meaning to sort out a help to buy/LISA for sometime but never got round to it.
I understand the help to buy ISA is the old one and now replaced by the LISA as the better option. Been doing some reading around since the previous thread popped up the other day and still a little confused as to the best way to go around it.
There seems to be few providers for LISA's, Most common seem HL and skipton.
I read somewhere that the 25% bonus upto £1000 is now no longer paid at the end of the year but now monthly. At the current time frame. Would that make any difference to maximizing the £4000 max before the end of the financial year?
Does anyone have any recommendations for provider, stocks&shares vs cash LISA. Best options to max out before the end of the year.
Any help would be appreciated.
I understand the help to buy ISA is the old one and now replaced by the LISA as the better option. Been doing some reading around since the previous thread popped up the other day and still a little confused as to the best way to go around it.
There seems to be few providers for LISA's, Most common seem HL and skipton.
I read somewhere that the 25% bonus upto £1000 is now no longer paid at the end of the year but now monthly. At the current time frame. Would that make any difference to maximizing the £4000 max before the end of the financial year?
Does anyone have any recommendations for provider, stocks&shares vs cash LISA. Best options to max out before the end of the year.
Any help would be appreciated.
paulwoof said:
stocks&shares vs cash LISA. .
Long term s&s have had better returns than cash, but with the caveat that there's no guarantee about how much they'll be worth next Tuesday.As a rule of thumb, if you're going to buy in the next ~5 years go cash, if you're going to buy further in the future than that, and/or have half a thought that you may end up using the money for retirement instead go s&s.
Regarding the 25% bonus. My understanding is you get 25% of any contribution made in the prior month. So if you deposit the full £4000 in month 3 of the year you'll get the £1000 in month 4. If you put in £100 per month, you'll get £25 for each contribution the month after the contribution.
The LISA is better than the H2B ISA as you can put more in it. H2B ISA is a max of £200 pcm, so £2400 a year. The LISA is £4000 per year. Most helpfully, it doesn't have to be trickled in monthly. I save into a regular savings account and shift £4k into the LISA near the end of the tax year (6 April, so end of March).
There is only one provider of a cash LISA, afaik - Skipton. S&S LISA is likely to give higher returns, but with higher risk - as someone mentioned above, typical advice is to stick to cash unless you intend to buy 5+ years in the future. With current Brexit uncertainty, I would be even more tempted to stick with cash, as you would be pretty upset if the value of your house savings dropped 20% which it may if we enter a deep recession.
You only get the 25% bonus once, but you get the bonus monthly so if in a S&S LISA you will get the benefits of growth if you put the money in earlier (the interest on the cash LISA is so low as not to be worth worrying about).
There is only one provider of a cash LISA, afaik - Skipton. S&S LISA is likely to give higher returns, but with higher risk - as someone mentioned above, typical advice is to stick to cash unless you intend to buy 5+ years in the future. With current Brexit uncertainty, I would be even more tempted to stick with cash, as you would be pretty upset if the value of your house savings dropped 20% which it may if we enter a deep recession.
You only get the 25% bonus once, but you get the bonus monthly so if in a S&S LISA you will get the benefits of growth if you put the money in earlier (the interest on the cash LISA is so low as not to be worth worrying about).
My daughter's LISA with HL has worked perfectly.
She put £4K this time last year, then another £4K in the new tax year. HL added £1K each time after a couple of weeks.
HL has just sent the money to her solicitor for her new flat deposit.
Really was a no brainer if you are going to buy your first property.
She put £4K this time last year, then another £4K in the new tax year. HL added £1K each time after a couple of weeks.
HL has just sent the money to her solicitor for her new flat deposit.
Really was a no brainer if you are going to buy your first property.
From something I read this morning:
"Investors should use the Lifetime ISA (LISA) as the primary way to invest, as it offers a Government bonus of 25% each year. Once the yearly £4,000 LISA allowance has been maxed out, investors should use the tax efficient stocks and shares ISA."
Remember everyone has a £20k ISA allowance each tax year. You can contribute up to £20,000 across all your ISAs in the 2018/19 tax year, with up to £4,000 in your Lifetime ISA. The government bonus doesn’t count towards the £20,000 overall limit or the £4,000 Lifetime ISA limit.
"Investors should use the Lifetime ISA (LISA) as the primary way to invest, as it offers a Government bonus of 25% each year. Once the yearly £4,000 LISA allowance has been maxed out, investors should use the tax efficient stocks and shares ISA."
Remember everyone has a £20k ISA allowance each tax year. You can contribute up to £20,000 across all your ISAs in the 2018/19 tax year, with up to £4,000 in your Lifetime ISA. The government bonus doesn’t count towards the £20,000 overall limit or the £4,000 Lifetime ISA limit.
Edited by Somebody on Wednesday 27th February 14:03
Somebody said:
From something I read this morning:
"Investors should use the Lifetime ISA (LISA) as the primary way to invest, as it offers a Government bonus of 25% each year. Once the yearly £4,000 LISA allowance has been maxed out, investors should use the tax efficient stocks and shares ISA."
Remember everyone has a £20k ISA allowance each tax year.
Indeed, though it should be noted a LISA is only appropriate for saving for a first home or for retirement. You also cannot take money out with taking a hit."Investors should use the Lifetime ISA (LISA) as the primary way to invest, as it offers a Government bonus of 25% each year. Once the yearly £4,000 LISA allowance has been maxed out, investors should use the tax efficient stocks and shares ISA."
Remember everyone has a £20k ISA allowance each tax year.
I've got a help to buy ISA at the moment with Nationwide. Only just opened it last month, so only got £1,200 (putting £200 a month in).
Can I also get a LISA and put the full amount in straight away? Could I use both when buying my first house?
(I've not had a chance to look into LISA yet...off to research a bit now!).
Can I also get a LISA and put the full amount in straight away? Could I use both when buying my first house?
(I've not had a chance to look into LISA yet...off to research a bit now!).
LosingGrip said:
I've got a help to buy ISA at the moment with Nationwide. Only just opened it last month, so only got £1,200 (putting £200 a month in).
Can I also get a LISA and put the full amount in straight away? Could I use both when buying my first house?
(I've not had a chance to look into LISA yet...off to research a bit now!).
You can open a LISA stick 4k in before April 6 and then stick 4k in before April 6 2020. You can't get the bonus from both. Lisa is better as you can put more in a year and dont have to drip in 200pcm BUT there are penalties if you take it out which there isnt with the h2b.Can I also get a LISA and put the full amount in straight away? Could I use both when buying my first house?
(I've not had a chance to look into LISA yet...off to research a bit now!).
I opened and maxed my S&S LISA with AJ Bell just before the 2018/19 tax year and received the 25% (£1k) bonus a few weeks later - Since then I've been depositing £333pm and receiving the 25% bonus monthly...
I plan to purchase my first house in the next 1-2 years so I should cash out of my funds before then (probably), but I don't mind taking a loss to a degree as I will have received £3-4k for free essentially so it's a risk I'll probably take - Brexit isn't a worry as far as my funds are concerned, more US/China tensions... Which admittedly could be catastrophic
I plan to purchase my first house in the next 1-2 years so I should cash out of my funds before then (probably), but I don't mind taking a loss to a degree as I will have received £3-4k for free essentially so it's a risk I'll probably take - Brexit isn't a worry as far as my funds are concerned, more US/China tensions... Which admittedly could be catastrophic
Final call before going into the cash LISA.
Does anyone have a recommendation for provider. Main 2 seem to be skipton and newcastle building society.
Skipton brings up bad reviews, one on the moneysaving forum of a guy having a hard time trying to transfer out.
Cant find much on newcastle BS. They have the top rate at a blistering 1.1% vs 1.0 from skipton.
Does anyone have a recommendation for provider. Main 2 seem to be skipton and newcastle building society.
Skipton brings up bad reviews, one on the moneysaving forum of a guy having a hard time trying to transfer out.
Cant find much on newcastle BS. They have the top rate at a blistering 1.1% vs 1.0 from skipton.
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