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  • Writer's pictureAga - Mortgage Broker

Could you benefit from a Lifetime ISA?

What could be better than boosting your savings by further 25% when you are planning to buy a house? Could you benefit from a Lifetime ISA?

Here’s a couple of facts about a Lifetime ISA (LISA):

  • A Lifetime ISA can be opened by anyone aged over 18 and under 40

  • Savings made before 50 attract a 25% bonus from the Government (capped at £1000 per year).

  • This bonus is paid monthly, so interest can be earned on the bonus too.

  • A maximum of 4000 can be saved per tax year with no monthly limit.

  • Savings can be used to buy a first home, to provide benefits in retirement from age 60, or in case of a terminal illness with less than a year to live.

  • If savings are withdrawn for any purpose other than those stated above, a 25% charge is applied.

  • If you have both a Help-to-Buy and Lifetime ISA, the benefit from only one of these can be used for a first home purchase.

To be able to buy your first home with LISA savings and bonus you must meet the below conditions:

  • the property costs £450,000 or less

  • you buy the property at least 12 months after you make your first payment into the Lifetime ISA

  • you use a conveyancer or solicitor to act for you in the purchase

  • you’re buying with a mortgage

If you have any other questions about buying a house, get in touch with us!

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