Lifetime ISA explained: Is it worth it?

[@paul8513]

Great video!!! I was going to plow £20k into a stocks and shares ISA next year but now I will definitely be putting £4k in a LISA then probably invest in something very safe like S&P 500 then forget about it until I’m 60! Thanks so much for this info!! Just wish the allowance would go up!

[@paul8513]

@@walterpalmer6312 Surely you mean 500 baskets?

[@bryce-bryce]

Would not rely on 100% US. Better go for MSCi world or FTSE all world

[@YakobtoshiNakamoto]

I've just opened a LISA. Looking to buy my first home in the next 2/3 years so seems like a no brainer!

[@BeCleverWithYourCash]

Good luck! Which one did you go for?

[@YakobtoshiNakamoto]

@@BeCleverWithYourCash Cheers! Went for the Moneybox one. Seems like one of the best out there atm.

[@spencerosei2616]

Me too

[@ElliottForex]

How's it going with your LISA?

[@hashtag3969]

Is it lifetime cash lsa to save for deposit trustworthy! I want to say when you want to take your money out is the solicitor asking for loads of things to prove?

[@viamedia2704]

I should add that getting a Lifetime ISA might be a pretty bad idea if you're thinking of moving abroad down the line. While technically you can keep your Lifetime ISA (just like any ISA) while living abroad provided you don't contribute to it during your absence from the UK, it seems that most Lifetime ISA providers actually opt to close and liquidate your LISA if you stop being a UK resident. (I suspect they just want to save themselves performing the due diligence that you're paying any taxes you owe abroad etc.) This will obviously count as unauthorised withdrawal from your account so you'll get hit by that sweet 25% penalty - and that just because you decided to move to Spain or sth. Also, down the line it's not unthinkable that the Treasury might decide to impose some withdrawal charge on the LISA balance if you decide to retire abroad, even if you're following all the rules and only accessing it after the age of 60. After all that 25% bonus came from UK taxpayers money so the Treasury might not be comfortable with it leaking into some other economy.

[@ashwinkumarraghavan50]

What if you invest money and move the funds to buy a house and liquidate it and then sell the house or mortgage and then take the cash abroad?? Am i missing something?

[@sultanalbinali4033]

I suppose that theoretically would work but to my understanding, when buying a house, its directly done from LISA to solicitors (or so). Which might prompt you to check the fine print of the contracts. Its possible (i honestly dont know) that the gov will still take their money if you sell the house within certain period. Or they prevent you from selling it or using it commercially for a period of time. You must do your due diligence.

[@OngoGablogian185]

I'm non-resident now and guessing I'm pretty screwed for doing anything. I can't open any ISA, it seems.

[@jonathanrichmond9119]

Other reasons to invest in to a Liftime ISA is if you are already contributing the full annual allowance to your pension or if you are at risk of breaching the pension lifetime allowance. It can also be part of an early retirement strategy to supplement income until you can draw your state pension.

[@minaikegima5430]

Thank you so much for this video. It answered all my questions that I have been wanting to ask and explained in such simple terms for anyone to understand

[@stephcoathupe]

This was SO helpful, thanks so much for spelling it all out!

[@jaks2706]

I’ve been contemplating to open a LISA, Great video

[@tomodwyer877]

Brilliant explanaition, thanks Andy. Needed it just before I started a research project!

[@kiank3559]

Thanks for the great video as always. The channel is growing fast. Keep it up

[@BeCleverWithYourCash]

Thanks Kian!

[@strictlyyoutube6881]

I think this type of incentive is great for those who live up North. Makes complete sense, but for those who live in London 4k a year is abismal. You wont go anywhere really.

[@grottonisred6541]

This is brilliant...just the facts and easily understandable....

[@BeCleverWithYourCash]

Thanks Grotton, appreciate you taking the time to comment

[@AaliyahRash89]

No doubts , A good way of growing and saving your money is through investing . You don't need to have much before you can invest. "That little money you have now can make you millions if you invest it wisely". I wasnt financial free until my 40’s and I’m still in my 40’s, bought my second house already, earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing is a grand choice I made

[@93ally001]

Really good video, some timeline breaks would have been useful for each section. Great content though 👍

[@BeCleverWithYourCash]

Thanks Hamzah! Yeah I’ll try to get back in and add some when I get a chance

[@LookingAfterYourPennies]

Another fab video Andy! I’m a big fan of LISAs.

[@BeCleverWithYourCash]

Thanks Charlotte!

[@filipdaniowicz7666]

Very helpful video thanks Andy !

[@danielleirvine1536]

Great video really well explained!! Any advice for someone who wants to build there 1st home? I already have a first to buy isa but I've now decided to build.

[@DJ-mr6um]

Not me being from the poorest part of the South East, having worked my arse off to get out of poverty, to then give myself a financial education and think about saving for a mortgage - to find out that most of the house prices around here are £450k+.

[@sonyh7300]

great video Andy, thank you very much I wish I knew this before because I just turn 40y

[@BeCleverWithYourCash]

Ah, just too late!

[@rowenako6590]

Very helpful video, thank you very much for clarifying a lot of confusions. Is there any restrictions on what kind of property can be used with this lifetime ISA? I understand that when buying a house, you can get different mortgage deals, is there any restrictions about mortgage package from different lifetime ISA providers?

[@sender5804]

I don't consider LISA same as standard rate pension. who knows what will happen with personal allowance in 20 or 30 years but as it stands state pension would cover it and you would get taxed 15% at least (20% * 0.75) while LISA would be 0%. Salary sacrifice would make the difference smaller though. It does make sense to salary sacrifice the higher tax part of the salary.

[@Zaaz-km3zd]

This is a great idea for first time buyers. Unfortunately living in London, 450k will not get u a family home 😢

[@Savvyriri]

Buy an invest Buy to let you can do that as a FTB

[@XDI33LE118X]

Defiantly considering starting a Lifetime ISA in the new tax year. Not a home owner but thinking about having a better retirement along with the work based pension and state. Just got no experience in investment, worth the risk, many be

[@BeCleverWithYourCash]

Hi PC Newb. First I'd check you are getting the maximum contributions to your pension from your employer. And don't forget the tax relief if you're a higher rate taxpayer. In terms of having no experience in investing... well you're already investing via your pension! You don't need to be active with a LISA - you can just choose a tracker and let it do it's thing, in the same way your pension does.

[@kerryleemarais9233]

Really helpful. Thank you

[@saranyamani6601]

Thank you! This is very informative. Will there be any conflict if My partner and I open different LISA for one property we gonna buy. I mean like, is there any one to one rule between LISA and the property?

[@petercoombes2416]

Great comparison of Pension and ISA

[@BeCleverWithYourCash]

Thanks Peter

[@jagtarsandhu1538]

Thank you for the video. question : is that I am joint owner of a property. I am no longer a first time buyer.. is thos correct. Thank you for the upload. Very informative.

[@vtsormpa]

Thank you Andy!

[@BeCleverWithYourCash]

Glad it was helpful!

[@jakescottage6893]

Hypothetically.... my wife and I saved £30,000 in our LISA with hope of buying our first property worth £300,000 but eventually we bought a £250,000 home and put down a 10% which amounts to £25,000. My question is can we access the balance of £5000 at retirement?

[@Ultra54762]

?

[@oyedeleoyebanji7165]

?

[@monturrahman878]

Problem with pensions are these questions, what is the likelihood of reaching retirement age? How long are do you expect to live to enjoy the pension? Now the age is 68 but could rise to 70. Take your 25% tax free but this hits the retirement pension payments by around 28% annual decrease. The 75% than remains you are drip fed so in order to realise all returns you must survive 12 years taking you to 80! For me unlikely to make it to retirement age.

[@welshtony1]

Friend of mine just told me about this. I been looking at investing my money and he said he opened one of these, I'm 38 this year so I'm close to not being able to open one of these. Going by your video I get the feeling you think it's better just to put the extra money directly into the pension rather than using a LISA. I know this video was 3 years ago so maybe worth doing a updated video on this?

[@HassanPoyo]

Can i supplement a LISA mortgage with my own cash ie if i use £20K from my LISA can I top up another £20K from my own savings and use that to get a deposit or can i only use my LISA to get a deposit on a mortgage?

That’s a good question

[@HugglesVlogs]

Which company or bank is best to open a Lisa?

[@SebbySells]

Great video! Quick question though can you use the first time buyers option if you have inherited a house? I would assume so as the inherited house wasn't purchased correct?

[@henrywalker8938]

So fully invest into lifetime Isa and stocks and shares isa at the same, got it 👌🏻

[@markevans7968]

Great video Thankyou. One point I have a query on is the part you talk about waying up the odds of investing more into your workplace pension if you’re a higher tax payer or Lisa. If you pay the money into your pension to reduce your 40% tax bill when you draw your pension you will be taxed 20% anyways so for the 4k allowance it’s always better to invest into a lisa? Please correct me if I’m wrong 😬

[@browpetj]

Great video, it seems that gov in the UK can chop and change whatever tax they take whenever based on markets, crises etc... Even the withdrawal age can change on these 'instruments' (has happened in the past). Just like any pension type investment augmented (and controlled) by the gov. Nothing is for sure with these funds, you can lose capital left right an centre and rules can change at the drop of a hat! 😮

[@karthikjayavel5524]

Hi, This video is helpful. If I own a home in my home country, will I be considered a first-time buyer here in the UK? Am I eligible to open life time isa saving account?

[@lianroyjbotha3510]

Lets say I have decided to withdraw funds from my LISA torwards a deposit for a house, can i continue contributing into it afterwards for retirement? Or once you cash out that’s it?

[@precociousdeathdealer202]

Also to open investment LISA I have to do it by 39 years old

[@spaceboispeed]

Can you use a Lisa bonus for retirement if you’ve already used a help to buy isa for a home?

[@HugglesVlogs]

Hi! Thanks for this video. I'm thinking of opening a Lisa account. Any thoughts about doing it with unity mutual?

[@Freemind405]

Can i buy a house with my LISA saving, If I am buying a property with my partner who is a second time buyer?

[@Kaye-Gerima]

Thank you.

[@1234554321marcus1]

Hello, For the 1st property purchase. I would love to get the Lifetime ISA for that purpose.. But I have heard that you can only use the lifetime ISA on a first-time property if you're buying a new build? That not just any property (under that sum gap) as your first-time property?

[@jakescottage6893]

No, you can buy any property doesn't have to be a new build. My friend just bought his first home and it's nothing new.

[@michaelhall2138]

Can you answer this question.? If you can withdraw a Lisa at 60 tax free then can you then roll that into a personal pension using max limits,ie all of salary,for the next five years.Would this then attract tax relief?- and why has no one ever asked this question before?

[@Annagracie24]

Can you please tell me how long you need to have the house to be your main residence before being able to let it out?

[@spaceboispeed]

Can you use a LISA bonus at retirement if you’ve already used a HTB ISA bonus for buying a first house ?

[@adrianojesus9465]

One question, the 25% hat Governement gives is montlhy, but the 25% is it on the Full Value you hav einside the LISA at trhe end of the month or on the Value you are putting into the acount? What I mean is: - LISA has £1000 and Govertment will give then £250. End result is £1250 or - LISA has the £1000. You put more £200. Government will pay you 25% on the £200. End result is £1050.

[@adp3965]

You paid in £800 to get £1000 in the LISA. You pay in £200 more, get £50 bonus. Overall £1250 in the LISA having paid in £1000.

[@michaelhall2138]

A question.The withdrawal penalty is 25% of money withdrawn.But what does this mean if the stocks and shares Lisa has grown 10 times in value?Does the government take 25% of your profit?

[@monturrahman878]

Yes 25% of value of lisa

[@sportscards88]

Can anyone help me, I'm thinking of opening an LISA, I have owned a house many years ago and im currently renting. Am I allowed to have a LISA if im not a 1st time buyer?

[@zayans6091]

Amazing video! One question if I move and leave the UK forever (I’m not a passport holder) do I get penalised to get the money out?

[@xTenshiAi]

yes

[@Nix2389]

Thank you so much for this video, so so informative! I was wondering if you open a cash LISA and then decide 5 years down the line you want a stock and shares LISA, can you transfer what you already have into a stock and shares LISA?

[@akhu3034]

3:11 pretty sure he says you can 🤞

[@jakescottage6893]

No you can't. LISA is for either first time home buying or retirement. Not transferable to stocks and shares because that way you can withdraw it into a liquid cash.

[@najmasharif9037]

Is it worth getting a stocks and shares isa during a recession? I was planning to get one this year but now I’m worried it’s a dumb decision

[@Mrmallet777]

I just feel like if you're saving for retirement over say 20 years and the interest rate is 4 percent then inflation at 7 percent will eat away at the 25 percent bonus you get?

[@doodlefisher234]

How does the 25% government bonus work year on year? Say I put £4000 into the account in tax year 1; when this ticks over into the second tax year the government top it up with 25%, so £1000. That's now £5000. If I then make no additional payments into the account in tax year 2, at the end of that second tax year does the government top it up with 25% of the new balance, i.e. 25% of £5,000 (£1,250) or is it still 25% of that original money I paid in, i.e. 25% of £4,000 (£1,000)? Hope this makes sense!

[@gaiazoulay9]

I think the government match the money you put in each year by 25% so the bonus is limited to 1k per year

[@almm2279]

Thank you for your explanation, it is very informative. But I still have two questions: 1) Is the dividend payout from LISA perpetual? Or until 60? 2) Can I reinvest the interest in a LISA account? If yes, does it count for the 4,000 pounds annual allowance?

[@TravelChimp]

whos the best lifetime isa company which you can do this?

[@precociousdeathdealer202]

Bro I have 25 years left in lifetime Isa. I have question regarding lost decade. Say I have opened cash LISA to protect principal and Contribute 4k until I'm 50. What about the decade till I'm 60 where I can only get low intrest rate and no growth

[@BeCleverWithYourCash]

Really good question. So in theory you'd be able to open a new Lifetime ISA after 40 for transfers but not put any money into it. But in practice I'm not sure how many offer this. Hopefully it'll change as more people go past 40 and then 50 years old. Also, it's probably best to use a Stocks and Shares LISA for retirement as it's long term - so the gains should be much better than cash LISA

[@precociousdeathdealer202]

@@BeCleverWithYourCash bro I watched another UK you tuber who discussed the same topic and concluded investment LISA Is better option for retirement but you're principle is at mercy of stock market

[@lisagrundy2403]

It's a shame we can't just keep investing our own money after 50, even without the government bonus. I'm 39 and the no contributions after 50 rule makes me feel like the LISA is a bit limited, even a stocks and shares one. I'm interested what others my age think about this?

[@BodybuildingSteve]

So I have 12k in my help to buy, thinking of swapping to a lisa, so I should transfer help to buy account too a normal account, close the help to buy, then transfer 4k every year into the lisa? This is more for retirement and long term

[@kylestrop5741]

Greetings! In the scenario of buying a 1st home, is it limited to buying it in the UK? Or can I withdraw the money for a 1st home outside the UK? Thanks in advance!

[@BeCleverWithYourCash]

Hi Kyle, yes it's UK only for a first home with a Lifetime ISA.

[@jasminefstr]

Can you use a cash LISA with a help to buy, buying scheme such as part buy, part rent?

[@MD-cm8cb]

Does the interest compound? For example, if you put £4000 in the first tax year and get the 25% interest, so £1000 to equal £5000. If you were to put in another £4000 the next tax year, equalling £9000, would you get +25% interest on the £4000 put in that year or the total of £9000?

[@BeCleverWithYourCash]

The 25% bonus is just on new additions. But you’ll earn interest on all the cash in there at whatever rate the account offers

[@Mrmallet777]

But the interest won't be as high as inflation so over the 20 years period the inflation will have eaten away at your 25 percent bonus

[@UltraJamZHD]

can you use LISA AS YOUR DEPOSIT for a home and a cash ISA at the same time ?

[@AyoObanisola-wo1zn]

Hi Andy, if open the ISA life saving account this may 2024, and put a sum of £4000 , which month in 2025 can I put another £4000 to qualify for two bonuses on £8000 in two financial year ,less than 2years. Thanks

[@adrianojesus9465]

So if I am employed, it is better to get more money into the Pension instead of the LISA???

[@anna13469]

Hi, thank you so so much for this video, so helpful! I am a bit rubbish at understanding investments and was wondering if you could answer 2 questions: - can you confirm if the 25% penalty for not using the money to buy a home is on the cash you initially put in or is it the 25% bonus (i.e. do I still get the same money I put in back)? - is the 25% bonus calculated each year on the amount of money I have in the ISA account at that time (i.e. inclusive of previous year's bonuses)?

[@the2introverts]

Hello.!! 25% withdrawal charges on the amount you withdraw

[@jackleary691]

You get less back as the 25 percent withdrawal charge is on what you put in plus the 25 percent they gave you on the amount you put in.

[@jackleary691]

And for the second question no I don't think so

[@bertbrett64]

Hi Andy, if I make first payment of £4K into a lifetime ISA in March before end of tax year, can I put another £4K in April a month later after the new tax year has started? Then take 25% bonus on the £8K the following March a year later?

[@zakbetterknow]

Commented to see answer.

[@abyjoseph1462]

Good question... Following

[@terricollier4297]

I did....

[@RobdonInspires]

Yes you can

[@RukayatOgunlade]

What if the property is less than 450, less say 100? Any penalties?

[@davidohara1760]

Can you the money and bonus from a Lifetime isa to buy a buy to let property (if it’s my first home) - I know there’s limitations with the help to buy

Question: Let’s say my parents give me 20k and I saved some money in Life Isa, am I allowed to use it all together towards Deposit for my First Home ?

[@Amit_l92]

Hi Andy. Great video. I’ve opened a stocks & shares ISA this year. Can I also open & pay into a LISA too?

[@BeCleverWithYourCash]

Yes you can! As long as you meet that eligibility criteria explained in the video. The £4k limit for the LISA comes out of the total £20k ISA allowance

[@Amit_l92]

@@BeCleverWithYourCash Great thanks! 👍

[@seyhuh]

i am going to open a lifetime isa. however i may purchase a house in the next couple of months. does the lifetime isa have to be used as a house deposit or can it simply be used to pay off a large sum of a home after i have bought the house?

[@rebeccaenderio4998]

Hi! I just downloaded money box for ISA. Do I have to pay a deposit of 1000 pounds? Thank you

[@pas_pantou]

I will be 39 in few months. Now I have a Help to Buy ISA almost 10k in already. Can I open a Lifetime ISA too?

[@BeCleverWithYourCash]

You can’t use both the Help to Buy and Lisa for the home purchase. So you’d need to transfer the cash over, but that’s limited at £4K per year. So doing so would delay you buying until at least April 2023 if you wanted the bonus on all that money.

[@FXCartel]

I've got a help to buy I'm tempted to switch to a life time isa but don't want to lose out. Will take me 4 years to get to 12k and the max 3k bonus where as can get that in 3 years or less with life time isa

[@BeCleverWithYourCash]

The big reasons to stick with a Help To Buy are that you’re not 100% sure you’ll buy or if you’ll buy in the next 12 months. Otherwise LiSAs tend to win. At the very least open a Lifetime ISA now and put £1 in to start that one year countdown

[@FXCartel]

@@BeCleverWithYourCash I worked out if I move my money into a Lisa I can get the full bonus now and save faster then a help to buy. Thank you for this video really cleared things up better late then never

[@BeCleverWithYourCash]

Great!

[@ericalke]

Quick question Andy, every financial year starts in the 6th of April. Would I obtain the £2000 if I add £4000 into my ISA before the end of the financial year, add another £4000 after the start of the next financial year and then buy a house by the end of April? Thanks you for your time

[@BeCleverWithYourCash]

Yep you definitely could. You just need to make sure that the Lifetime ISA has been open for at least 12 months before using it. That can be with just a quid.

[@seyhuh]

does the lifetime isa have to be used to purchase a property that you will live in or can it be used to purchase a home to rent?

[@luisbenjamin7271]

where do I open a lifetime isa?

[@joshb7415]

the caveat no one has explained to me, why cant I just put 4k in the week before the payout? whats stopping me just doing that

[@douglasking2973]

Just a question. Could I invest 4k in lifetime isa and 20k in stock and share isa. Or is the 4k included in you're 20k allowance. Just watched . Got my answer now thanks

[@pm5095]

The 4000k for Lisa is included in the 2000k allowance..so if you put 4k in Lisa you have only 16000 left allowance

[@finlay1702]

But how do I open one? Can I do it on my phone? Do I need to go to a bank?

[@amaesin3374]

Hi, Can you share on accounts 40+ can open and help towards buying their first home

[@BeCleverWithYourCash]

Sadly there are no specialist accounts, so you'll be looking at the best paying savings accounts. There are regular updates on my channel if you go to the main page

[@JoSantino147]

Something wasn't clear for me and haven't been able to find information on it. Say you have 8k in a help to buy and want to transfer it into a LISA. Will I be able to transfer all that in one tax year or will I have to wait another year, keep my monthly contributions in the Help to Buy and then transfer the rest?

[@BeCleverWithYourCash]

You can only transfer in £4K each financial year; so you’ll have to wait until next year to move the rest. So it depends when you want to buy and, if outside London, how much the house is

[@uni3259]

Very helpful video!. Just as question regarding the property value, does the £450k cap apply to shared ownership properties as well? Would one be able to use this cash to buy 75% share of £600k property?

[@BeCleverWithYourCash]

HI Martynas, yes you can use a LISA for your part of the purchase, though the total property value is used to check eligibility (under £450,000)

[@gachacaspa]

Should I get a stock or cash isa? I'll be saving for probably 10 years when I start for a home.

[@BeCleverWithYourCash]

Generally it’s worth using stocks and shares for any savings that you won’t need for more than five years - BUT there’s always the risk that the initial deposit could fall in value, so you’ve got to be comfortable with that

[@Magneticvortex-kk4gb]

If you buy a business property through a limited company does that count as a first home?

[@bikeman123]

Of course not

[@Savvyriri]

You do need to have had the account open for 1 year

[@lakakhahaha2423]

If you use the LISA to invest in the stock market do you lose the 25% bonus

[@IndieButterflyWarrior]

That thought just crossed my mind. I would assume you'd have to wait until 60 to invest the money without losing the bonus.

[@TheWealthUniversityOfficial]

Can someone do a lifetime isa just before the 6th April and deposit £4k last min and get £1000 Gov bonus.

[@laurrenb6876]

Can you open a lisa and a cash isa in the same year? Or a lisa and a stock and shares isa in the same year?

[@BeCleverWithYourCash]

Yep!

[@deepahmedabadi1560]

Can anyone please help guide me whihc provider shall i select for Lisa?.

[@bethanirose5542]

Can me and Mt partner have separate accounts but use it for the same property

[@AhlulQuraan]

If you invest in a stock isa, is the 25% charge applied on the total pot or just the initial investment? E.g. I put in £4k and then get £1k from goverment. The £5k grows and gains in value to £6k. If I then decide to withdraw, do I get charged 25% of £5k or £6k?

[@the2introverts]

25% withdrawal charges on the amount you withdraw

[@mattward3280]

Do you have to put your in the max amount of 4k to get the 25% yearly bonus? Or can it be below 4k input and you still get the yearly 25% bonus?

[@the2introverts]

Can be any amount less that 4K too and they will add 25% of that amount

[@joltix3494]

Can you invest in a index fund into a lifetime isa

[@mayathethy1565]

Can you use it to buy a flat?

[@bennybenny7382]

What happens if you use LISA to help get more money towards a home, buy the home then sell the home? would you lose the cash or something?

[@BeCleverWithYourCash]

Hi Benny, so technically you can do that with no problem. People's circumstances change all the time which might require you to sell or rent it out. And there's no set policy that I can find which says you must be there for say 6 or 12 months before a change is allowed. However there is always a chance that if somehow they (and I'm not sure who "they" would be) found out you'd done this and decided it was always your intention to not live there yourself they could ask for the money back. I think it's an unlikely scenario though.

[@bennybenny7382]

@@BeCleverWithYourCash thanks

[@michelecarbone2896]

Thank you for your video, I am not sure I have understood everything. Let's say I put 4k before the end of the tax year, then I will get 1k bonus from the government. If then I don't put any more money in the LISA will I still get the 1k bonus every year? So an initial deposit of 4k will result after 10 years to a 14k fund? Or do I need to put 4k a year to get the 1k bonus? Another question about withdrawal. If I had the LISA for 2 years and decide to withdraw, will I still lose part of my initial deposit? Intuitively this is true in the first year, but what about the 2nd, 3rd, 4th year? Thanks

[@callumj4232]

To my understanding they only add 25% to the money you put in the one time.

[@michelecarbone2896]

@@callumj4232 I am not sure I think if you put 4k per year you get a max of 1k per year. So let's say I put 4k before end of tax year I get 1k contribution end of the month, year after I put another 4k I get 1k. So after 2 years I set 8k if my own money aside and receive 2k contribution... Now I am not sure what would happen if I withdraw early but I guess it would be 10k (after 2y) minus 25% 7.5k...not great to lose 500£...so it's really aim he'd at those 1.planning to stay in the uk 2. Planning to surely buy a house with a mortgage 3. People with above average income who can deposit and forget until they are in their 60s.

[@callumj4232]

@@michelecarbone2896 1. You cant think of it as a 1k bonus on 4k, its a 25% bonus on however much you put in; so if you put in £100 the government will contribute £25, if you put in £400 they will contribute £100, and so on. Note that you can add as little or as much as you like as often as you wish so long as it is less than £4000 total during the year (i.e. you do not have to put in all the money at once!)

[@callumj4232]

@@michelecarbone2896 2. Yes, your calculations on loosing £500 in that scenario are completely correct. The scheme is indeed intended for those buying a house or saving for retirement *that is its purpose*. If you need to keep saving for any other purpose you are far far better off opening a standard ISA.

[@clickforvik7706]

Can I have a LISA and just pay 4K in at once and then have a family member open one and do the same thing

[@BeCleverWithYourCash]

You can only have a LISA for you personally. So if they open one up it will be for their first home/retirement

[@ajaygurung399]

The house that I live in is under my brother and dad's name. Can I use my Lifetime ISA to remortgage and add my name in? (I am a first time buyer)

[@BeCleverWithYourCash]

Hmm... interesting one. I'd guess no as you're not buying, you'd be remortgaging an existing property. Might be worth asking a mortgage advisor