If you’re planning on buying your first home a Lifetime ISA (LISA) is something you should definitely think about using! You can get up to £4,000 from Boris for free! For free!
What is a Lifetime ISA (LISA)?
You just need to be over 18 and under 40 to open a Lifetime ISA, you might have also heard it being called a LISA!
The way it works is really simple – You can pop up to £4,000 each year into a Lifetime ISA, this is where the magic happens:
- Any interest you earn on your money will be tax free
- The Government will add a 25% bonus on top of your savings, every year
So if you save £4,000 towards buying your first home every year, the Government will add an extra £1,000 to your savings. We call that a mini-miracle!
The only catch to the Lifetime ISA scheme is that you can only use the money in your Lifetime ISA (LISA) to buy your first home. If you withdraw it or use it for anything other than buying your first home, you’ll have to pay a 25% withdrawal charge.
Can I Buy My House With My Partner Using Your Lifetime ISA (LISA)?
Yes of course! If the person you are buying with also has a Lifetime ISA, you can both using your savings and Government bonus to buy your first home together.
If they already own another house they will have to pay the 25% withdrawal charge on their Lifetime ISA savings.
