If you’re looking for a way to save as much money as possible for a deposit on a house, then you might want to keep reading and find out about the Lifetime ISA…
You can pay up to £4,000 each year into your ISA account and receive a 25% bonus (£1,000 maximum) for free from the government – who doesn’t like the sound of a free £1,000?
This one is quite simple. Anyone can open a Lifetime ISA, as long as you’re over 18 years old and under 40 – although you can keep paying into the account until you’re 50. Once you turn 50, you can still keep the account open, you just won’t be able to pay into it anymore.
Aside from getting a free 25% bonus…
As you need to have the account open for at least 12 months, this is a long-term savings account. So if you’re in a hurry to quickly buy your first house, and will want access to the money within a year, this might not be the right route for you to take. However, if house prices become more affordable during this time, then waiting for 12 months might not be such a bad thing.
The Help to Buy ISA has now closed, but if you already have an account open, that’s fine. You can keep saving into it until 30th November 2029 when all accounts will close, and you must claim your bonus before 1st December 2030.
If you currently have a Help to Buy ISA, you can transfer your funds into a LifetimeISA, or you can save into both accounts. Just be aware that you’ll only be able to use the bonus from one of them to buy your first home.
To find out more about Lifetime ISAs, please feel free to get in touch with our team of expert mortgage advisers.
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.