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I understand you have to have a mortgage to use it for a house without a withdrawal charge? but can you say build up 90k in a life time Issa and have a 10k mortgage on your first house costing 100k?

red squirrel
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1 Answers1

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You can put in a maximum of £4000 per year until you're 50 into a Lifetime ISA. The UK government will add a 25% bonus.

The youngest you can be is 18 so that's 50-18 = 32 years you could contribute for, provided you live in the UK throughout that period.

You only keep the bonuses for house purchasing if the house does not cost more than £450,000 and you're a first time buyer.

It's going to take a while to get £90,000 but you could do it that way, yes. If you're thinking that you could sell the house immediately, well you could but you'd have paid transaction costs on buying the house that you won't recoup.

Robert Longson
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  • Though by selling would that money then be available to add to a self invested personal pension gaining a further 25% and more than it would had it been put straight into a self invested personal pension? – red squirrel Jun 08 '19 at 20:12
  • pension limits per annum are the lower of your earnings and £40,000 and you only get tax relief over and above the personal allowance so you'd have to have pretty high earnings, in which case why would you need to bother. – Robert Longson Jun 08 '19 at 20:22
  • Oh ok. I suppose you could put it in premium bounds while moving over a longer time period. Although the average rates for premium bounds have been historically lower though less volatile than the stock market. – red squirrel Jun 08 '19 at 21:14