The Lifetime ISA (sometimes referred to as the LISA) is a long term Independent Savings Account which was introduced in 2016 to help both first-time buyers and those looking to save towards a pension.
Now that you know a little bit more about what a Lifetime ISA is, take a look at this short video of our Mortgage Advisor, Sam Fox, talking about what the difference is with the Lifetime ISA and why they are great for First Time Buyers.
Commonly asked questions:
What are the differences between the Lifetime ISA and Help to Buy ISA?
The main difference is that you can put lump sums into a Lifetime ISA which you can’t with a Help to Buy ISA.
Also, you are able to save up to £4,000 a year where as those who opted for a Help to Buy ISA were able to save £3,400 in the first year and £2,400/yr moving forward.
The max property price you can use your savings towards with a Lifetime ISA is £450,000. When is the Lifetime ISA bonus paid?
Annually and you will also receive interest on the bonus once it is paid! Who can open a Lifetime ISA?
Anyone aged 18 to 39. What do I need to be aware of before opening a Lifetime ISA?
If you want to withdraw your investment for another reason other than buying a house or saving towards your pension then you will have to pay a penalty of 25% of the amount withdrawn.
You can also only use the ISA after it has been open for 12 months, so the sooner you open it the better!
There are particular banks offering this ISA so if you are a First Time Buyer or looking to save towards your pension then get yourself one set-up today!
If you have any other questions then we would be happy to help. Please don’t hesitate to get in touch with one of the team on 01925 573328