What is a lifetime ISA (LISA)?
Lifetime ISAs are a type of ISA that can help you buy your first home sooner thanks to the generous government bonus.
Any money you pay into a lifetime ISA gets topped up by 25%, so if you pay in the maximum £4,000 in a tax year, the government will add £1,000 to your account!
But lifetime ISAs should only be used to build a deposit for buying your first home or for life after 60. If you withdraw money for anything else, you'll be charged a government withdrawal fee.
Choosing a lifetime ISA
You can use a cash lifetime ISA or invest in a stocks and shares lifetime ISA. Or perhaps you'd prefer to use a different type of savings account for now and move your money into a lifetime ISA when you're more sure you want to buy a home.
The choice is yours!
Buying your first home with a lifetime ISA
Once you've had an offer accepted on a property, you'll need to let your conveyancing solicitor (conveyancer) know that you'd like to pay for your deposit in part or fully with a lifetime ISA. You'll need to complete a form and so will they.
On completion day, we'll send the money directly to your solicitor.
Using a lifetime ISA for life after 60
After you turn 60, you'll be able to withdraw money from your lifetime ISA without paying the government withdrawal charge, even if you're not using it to buy a house.
Avoiding the lifetime ISA withdrawal charge
The lifetime ISA withdrawal charge is 25% of everything you take it so should be avoided if possible!
Buying your own home: things to consider
Owning your own place can mean freedom for some people. You'll be paying off your own mortgage instead of a landlord's. So, let's dive into a few things to think about before you buy.
Open a OneFamily Lifetime ISA
Our Lifetime ISA comes with a 25% government bonus, worth up to £1,000 a year!
Our Lifetime ISA invests in stocks and shares, so the value is likely to go up and down over time. This is normal for this type on investment, but it means there is a risk you could get back less than you put in if you withdraw at a time when the value is lower.