Here I will describe how to open a lisa and tell you how i opened my lisa.
So first things first, the LISA providers are pretty sparse. There are only 3 providers that offer a stocks and shares: nutmeg, share centre and Hargreaves Lansdowne. I opted for the latter, because the other two do not give you the option to pick the funds.
I will be switching my help to buy isa as well.
If you do that this tax year, it won't count towards your 4k limit! And you will still get the 25% bonus in total.
HL charges 0.45% per year and charges for selling and buying stocks and funds. That is more than my s&s isa with axa that charges 0.35% and does not charge for selling or buying funds (no stocks available).
I hope to buy a house in 3-4 years.
Opening the account was straight forward: it is a rather simple process on the website and it is also possible to open the account over the phone.
Transfer came through, took a little over 2 weeks. Smooth process; filled out form, sent it to HL and they sorted it.
if you open a LISA now, you have the chance to win 20000 pounds!
Tips, tricks and snags
The minimum investment to open is 100 pounds lump sum or 25 pounds monthly.
The opening process was quick and straightforward.
Now I am waiting for the money of my HTB isa to transfer over( i will get a bonus over it and it won't count towards this years limit; so I will be able to put in 7000 pounds ( 4000 new, 3000 transfererd from my help to buy ISA) and I will get the 25% bonus over the whole sum next may!)
I'll keep you posted on the progress!
Good luck ! It's hard to get a decent investment at the moment.
It was much easier in the "good old days" before the last crash. Interest rates were good and ISAs easy to come by. Endowment mortgages were a good investment, the post office was offering 8% interest and firms like Axa and Clerical & Medical were paying out thousands in compensation for giving out "bad advice" years earlier.
Nowadays you're lucky to get 1% interest and house prices are sky-high. The worry for anyone buying a house NOW is that inflation seems to be rising, and sooner or later the Bank of England will raise interest rates.
I just hope the government of the day keeps raising the personal tax allowance in line with (or higher than) average earnings. Keeping it at a fixed value is an automatic tax increase as wages increase. Better for the tax to be purloined when you buy something rather than taken before you even receive your wage. Something like this affects everyone - even pensioners who have private pensions as well as the state pension.