First-time buyers

How a lifetime ISA could help you buy your first home sooner

Lifetime ISAs are the ultimate house-buying hack for first-time buyers.

The government tops up everything you pay into a lifetime ISA by 25% - that's an extra £25 towards your deposit for every £100 you save yourself! What's more, as it's an ISA, you won't pay tax on any money your investments make.

Just be aware that you are limited to saving no more than £4,000 a year in a lifetime ISA and if you take money out for something other than buying your first home (if you're younger than 60), HMRC will charge you a penalty fee.

Find out more about lifetime ISAs

What is a OneFamily Lifetime ISA?

Our Lifetime ISA is what's known as a "stocks and shares lifetime ISA", which means we invest your money in a fund that buys shares in the stock market on your behalf.

We have two different funds for you to choose between when you open your Lifetime ISA:

Global Equity is the slightly riskier of the two, but it also has greater potential for your money to grow. 100% of the money you invest in this fund is used to buy shares in companies that meet our climate-friendly standards.
Global Mixed is less risky as only up to 35% of your money is used to buy climate-friendly options, while the rest is invested in fixed-interest assets.

By choosing a OneFamily Lifetime ISA, you’re helping us to hold companies accountable for damage they’re doing to the environment. Find out how our climate-friendly scoring works.

With a stocks and shares lifetime ISA you could see more growth than cash over the long term but, as with all investing, this approach does come with risk and you could lose money as well.

How much can I invest in a lifetime ISA?

Up to £4,000 each tax year. Tax year re-starts every 6 April.

If you make the most of this limit, you'll get an extra £1,000 on top of your savings from the UK government.

The money you put into a lifetime ISA counts towards your overall ISA limit, which is £20,000 this tax year. So, if you do put £4,000 into a lifetime ISA, you'll only be allowed to put up to £16,000 into other ISAs in the current tax year.

What are the rules with lifetime ISAs?

You must be aged between 18 and 39 (inclusive) to open a lifetime ISA
You can pay in up to £4,000 each tax year (tax year runs April – April)
You can't pay any more money in after you turn 50

To avoid paying a penalty fee, you must:

Have your lifetime ISA open, with money in it, for at least 12 months before you make any withdrawals
Use the money in your lifetime ISA towards the deposit on the first home you buy (or you can take money out freely after you turn 60)
Use your lifetime ISA money to buy a property for you to live in, which costs no more than £450,000

If you do take money out of your lifetime ISA for anything other than buying your first home (and you're not yet 60), you will have to pay HMRC 25% of the money you withdraw. If you take all your money out, this penalty fee will be more than the government will have topped your lifetime ISA up by.

Guides to buying your first home

A person holding a wooden model house and a pair of keys.

What is a mortgage?

A mortgage is simply money lent to you by a mortgage lender to buy a property. With most mortgages, you’ll pay this money back over time by paying a set amount each month.

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Buying vs renting: which one is right for you?

Owning your own home is very different to living in rented accommodation and one lifestyle could be more suited to you than the other.

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Couple in a kitchen dangling their new keys

How to save for your first home faster

Saving for your first home takes time, but there’s a few first-time buyer life hacks that can get your feet on the property ladder much quicker.

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How much deposit do I need to buy a house?

Saving for your first home is easier when you have a target to aim for. But the exact amount you need depends on several factors.

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What is the First Homes scheme?

The First Homes scheme was launched by the UK government with the aim of creating more affordable homes for first-time buyers.

Read article

How to use a lifetime ISA to buy your first home

Lifetime ISAs give you a 25% government bonus on top of your savings to help you buy your first home or save for retirement.
However, buying a house can be a complicated process, so how does your lifetime ISA fit in?

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The front of two terraced houses, one with a blue front, the other pink

How to get on the property ladder

Your first home may feel like it will take a long time to save for. But there are ways to get there a little bit sooner.

Read article

Two people holding hands and wearing paint-splashed jeans, with paintbrushes in hand.

Help to buy ISA vs lifetime ISA – which is right for you?

First time buyers get a 25% government bonus with help to buy and lifetime ISAs. Find out if transferring to a lifetime ISA is right for you.

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Lifetime ISA investment calculator

See how much you could save for your first home with a lifetime ISA

The lifetime ISA calculator shows how your lifetime ISA could grow with low, medium and high performance. Remember, projections are not a guarantee of future performance and you could get back less than you pay in.

Initial investment

Monthly payment

What do these numbers mean?

Please note: No more than £4,000 may be invested into a Lifetime ISA within a single tax year. This includes your initial investment and your monthly direct debit payments.

How to open a lifetime ISA with OneFamily

1

Apply online

Click the 'Open a Lifetime ISA' button below to get started
2

Choose a fund

Select one of our two climate-friendly funds and complete the online form
3

Manage your investments

Keep track of your lifetime ISA's performance in your online account
4

Buy your first home

Use your lifetime ISA towards the purchase of a first home