What is a Lifetime ISA?

A Lifetime ISA (LISA) is a cash ISA designed to help you save for your first home or your retirement.

If you’re a UK resident, aged 18 to 39, you can open a LISA and earn a 25% government bonus on your savings up to £1,000 every tax year.

If you’re finally in the position to buy a home, we’ve pulled together the information you need to use your LISA towards your purchase.

You can use your LISA funds if it’s been open for at least 12 months to buy your first home, without any government withdrawal charge. You don't have to use your full LISA balance to buy your home. Any funds you leave in your account can be accessed after your 60th birthday.

If you’re buying with someone else who is also a first time buyer, they can use funds from their own Lifetime ISA and their government bonus too.

If you have a Help to Buy ISA you can only use one government bonus towards your purchase, so be careful choosing.

About your first home

• Must be in the UK
• The property you buy must be £450,000 or less
• It must be purchased through a conveyancer or solicitor
• You must buy it with a residential mortgage
• You have to live there as your main residence

1. Find out how much you can borrow

   Speak to a professional to find out how much you can borrow and make sure you’ve got the upfront deposit you’ll need.

2. Find your best mortgage offer

   Shop around to find your best mortgage offer, it might not always be with your bank.

3. Access your LISA money

   We will keep your LISA funds until the time comes and you’re ready to purchase your home. We’ll transfer the funds you tell us straight to the conveyancer handling your purchase.

When you’re ready to buy:

You will need to complete and send an Investor Declaration Form to your conveyancer.

They will complete the Conveyancer Declaration Form and send both to us. We will release your funds within 30 days.

What if something goes wrong?

Buying a house is complicated, so don’t worry if something doesn’t go smoothly. If it turns out your conveyancer needs more than 90 days to complete your purchase, they can apply for extended access to your LISA funds. If they don’t apply for an extension your withdrawn funds are subject to the government withdrawal charge.

If the sale falls through for any reason, simply return the funds to your LISA and they will continue to earn interest and receive the government bonus on your deposits.