Can I use a LISA to put money into a mortgage that's in my partner's name?

29 July 2021

Question by Elizabeth

Hi! I have never owned a property and have a Lifetime ISA. My partner and I have made the decision to add me to the mortgage he already has on the house we currently live in. As it will be my first property/mortgage can I still use my LISA to put money into the house or does the fact he already owns the house change this? I have contacted my ISA provider and they have said I can "use my LISA towards the deposit" and I'm not sure my question was truly understood. Many thanks, Elizabeth

Answered by Boring Money

Hi Elizabeth,

Thank you for your question.

In order to qualify for the bonus on your Lifetime ISA (LISA), you need to meet the following criteria:

  • You must be buying a residential UK property to live in that is worth £450,000 or less, and this applies to the whole property not just the portion you own.

  • You need to have held the LISA for more than 12 months.

I think the question is, how are you planning to add your name to the mortgage? Are you doing it by way of adding yourself to the existing mortgage, or are you re-mortgaging the property and placing it into joint names? And will you be making a deposit towards the mortgage when doing so?

If you are making a deposit, then you will be able to use the LISA for this purpose, for your share of the property.

When the time comes, you will need to ask your LISA provider to transfer your money to your solicitor, and it is important that you do not withdraw the money yourself as you will lose the bonus. Your solicitor will be able to tell you when the best time to do this is, as once transferred you need to use the money within 90 days or else you will lose the bonus.

If you are in any doubt, your solicitor should be able to help.

By necessity, this briefing can only provide a short overview and it is essential to seek professional financial advice before applying the contents of this article. This briefing does not constitute advice or a recommendation.

Answered by

Boring Money