Peerielass:


I agree but I think it’s the lure of the extra 25% government funding that attracts people to LISA 😂.

Lexusgs430:


You also receive 25% on a SIPP account......😜🤣

Lexusgs430:


You also receive 25% on a SIPP account......😜🤣

Lexusgs430:


But as you don buy house now, would LISA still be relevant......

Would your funds In a LISA, be invested on the stock market, or it's just simply savings.......

I received my NHS pension statement last year, Garri Ijebu wey soak for water, no fit swell reach am .......😂

Estroller:


Was going to mention this, Ukay2 wants to have the best of both worlds, allow govt breathe small na 😁. As you have used your LISA to buy a house, you'll stop receiving the 25% top up. It is either you use what you've accrued so far for the house purchase which stops receipt of the bonus or you leave it till retirement and keep enjoying the 25% bonus. Your funds is probably best utilized outside your LISA now.

Estroller:


Was going to mention this, Ukay2 wants to have the best of both worlds, allow govt breathe small na 😁. As you have used your LISA to buy a house, you'll stop receiving the 25% top up. It is either you use what you've accrued so far for the house purchase which stops receipt of the bonus or you leave it till retirement and keep enjoying the 25% bonus. Your funds is probably best utilized outside your LISA now.

Lexusgs430:


But as you don buy house now, would LISA still be relevant......

Would your funds In a LISA, be invested on the stock market, or it's just simply savings.......

I received my NHS pension statement last year, Garri Ijebu wey soak for water, no fit swell reach am .......😂

Peerielass:


Are you sure this is correct? As far as I know, he would continue to accrue the govt bonus if he continues to save in the LiSA until he’s 50 irrespective of whether he used some of the money to buy a house.

koonbey:


You can continue saving into your LISA and receiving the 25% (£1k) top up even after buying an house from it, until age 50.

https://www.ajbell.co.uk/faq/can-i-use-my-lifetime-isa-both-buying-my-first-home-and-retirement#

Lexusgs430:


Before you start considering BTL, you need to fully understand the implications of nasty tenants, almost sending you to an early grave.......

If a S8 or S21 is issued, it could take you the better part 6-9 month's to get your property back (all the while, the tenant would be living rent free)......

Ensure you have access to about 5-9 month's cover, to bridge void periods.....

Government legislation is also hammering the BTL industry (ensure you're up-to-date with all implications) (for now and future).......

SIPP/ISA - With a SIPP, you cannot remove fund's, till you reach retirement age (the advantage of SIPP accounts), is HMRC credits you 25% of monies deposited.....

Property vs SIPP/ISA - Why not dip your toes in all ......🤣😂 (subject to affordability)........😁🔥

ukay2:


For me, l continue with my

-Stocks and Shares ISA for dividend stocks and growth stocks,

-LISA to receive 25% of my contributions till govt stops contributing their own at age 50 (15yrs to go) and

-my NHS pension contributions till retirement.


I don't have headaches for BTL for now.

Peerielass:


Yes, higher and additional rate tax payers could get up to 25% but majority of basic rate taxpayers will only get 20% on SIPP.

ukay2:
FINALLY....

Completed today with Halifax at 5.3% 2 years fixed with a 15% deposit...Kent, SE England...

....keys in my hand....

To God be the glory....

Thank you everyone for the journey...1st August 2023 to 27th October 2023....

@Lexusgs430, thank you for reminding me that..... RENT MONEY is DEAD Money.....

We all shall get into the property ladder sooner than we think....just keep working daily...

Lexusgs430:



Why not invest through a SIPP account.......

justwise:


How does this work? I have read this from you before.

jedisco:


Isn't it 20% rebate (i.e top-up the SIPP provider applies for) for all initially. Then higher rate tax payers can now claim the remaining 20% on the returns.
I.e. 40% tax relief it it's all within the higher rate band- similar to salary sacrifice

Lexusgs430:


You choose a SIPP broker, you manage this SIPP portfolio yourself, you buy, you sell, HMRC gives you 25% on top of each contribution you make......

SIPP account usually cost about £9.99 pcm & you cannot withdraw from your SIPP portfolio, until you attain the ripe age of 65......😜🤣🎂

justwise:


Congratulations!!! Really happy for you.

Solumtoya:
All these NHS children... If you're like me that doesn't work in NHS, check your Employers, they might have some juicy offers like pension matching, schemes where you can get Stock Options by buying the Company shares at a discount using your pre-tax income, etc.

I will definitely do BTL sha, like jedisco said there's Asset Appreciation, Rental Yield and Leverage. Let's keep packing up chunks of the King's land. Diversification is key

Estroller:
On the subject of overpayments, putting the overpayment amount in an account with interest rate that is higher than the mortgage interest rate and paying it all towards the mortgage at the end of the fixed period will achieve the same thing wrt to overpayment if not better considering the higher interest rate on the savings account. Is this thinking correct?

Solumtoya:
Avoid using your account for too many International transfers to/from Nigeria within the 4 months leading to your application as Barclays and many other Lenders can have serious issues with this.

If your main Bank is Barclays, they have access to your Financial transactions and can deny you for reasons dating further back while if your accounts are with other banks, they rely on only the time frame you gave them. Of course, if they have concerns they can request for more Months of Statements but I'd say it might be easier to avoid Barclays as main Bank.

LISA please. If you're not 40 yet, please open your LISA today. Moneybox is a good provider and you need only £1. I delayed on my LISA and I am still waiting for it to turn 1 year this week so I can access my funds. LISAs are great, I got free £4,000!

Many Mortgage Advisors charge a fee. You don't have to pay. The Bank pays them like 0.5% of the Mortgage amount so you really shouldn't pay of you don't want to, just look for another Advisor. If you're bold and don't have any special circumstances, you don't even need an Advisor. The main advantage of an Advisor would be Specialist Advice and helping with a range of products across many Lenders to help you get the best deal.

For Tier-2 Holders, it's easiest when you have more than 2 years residency, more than 2 years left on your Visa, 10% deposit (if you have up to 25%, you may not need 2 year residency); also if you have household income of over £100k, you get more Lenders. I had 2 years residency and the only Lender I got was Barclays. Skipton almost considered and Halifax had conditions such as 25% deposit or £100k+ household income.

Don't waste your time getting many Decision-in-principle, just go for Barclays first. Also ensure that whatever Decision-in-principle is only a soft check.

While having credit is good, you may be required to clear all outstanding debts before disbursement of the Mortgage.

Be very cautious of Solicitors, they can mar the whole process. Always go for referrals, a Solicitor someone has used and confirmed as efficient.

Pearlyfaze:
Good evening dear ancestors.
Please I will need some clarification to use hold body before meeting with Mortgage Advisors in few weeks time. I would love to know, For a new build home, How long does it take from reservation to moving in.

We will complete two years by next month, we have 15% deposit for the property we intend to buy. So we intend to start the process by next month and by this time we will be having one year left on our current visa.

What are the things to look out for.

solveabode:
Congratulations.
Please can you enlighten me on how you are able to get £4k on LISA? Cos from my understanding, you only get a bonus of £1k if you deposit £4k in a year.

Also, can you recommend a solicitor?

Thank you

Solumtoya:


My wife and I opened in Oct/Nov. By March, we had both put in £4k each and got £2k bonus. Then by last month, we had both put in another £4k each and got yet another £2k bonus.

The Tax year ends 5th April so the £4k limits reset on that date.

As for solicitors, I just used the one the Developer recommended, they say it's not advisable but it worked for me. If it was an old house agent's recommendation, I won't have used them though but New Build, I'm comfortable using their recommendation.

Solumtoya:


Reservation to Completion for a new build could take anywhere between 1 month and 8 months depending on what stage of building the property is in.

Once you apply for a mortgage when you clock 2 years (if you're waiting till then), you could get an offer in 2 weeks, then Exchange Contracts in another 2 weeks. Afterwards, you just wait for the Developer to finish the building which could take a few weeks or a few months. An empty plot, for instance, could take up to 6 months while if the house is ready, it could be 1 week.

My only worry is the length of time left on your visa but just get a good Advisor, with 15% deposit, they could make some magic.

Pearlyfaze:


Thank you so much Sir,
So at exchange of contracts, while waiting for the developer to finish the building, is one expected to start paying the Mortgage?. Or you start paying when you move in?.

I just want to be clear and get ready for it.

Pearlyfaze:


Thank you so much Sir,
So at exchange of contracts, while waiting for the developer to finish the building, is one expected to start paying the Mortgage?. Or you start paying when you move in?.

I just want to be clear and get ready for it.

deept:


Be careful o.

There was a programme/documentary sometime ago about people who went to exchange contracts on buildings yet to be finished. The developer failed to deliver and for years they waited for 'houses' to be complete. Once you exchange contract there is no backing out. Get a good solicitor to look at whatever contracts you wil be committing to.
EOC means paying your deposit, these people could not get their money back and no house. There was no timeline for house to be complete.