A Lifetime ISA (LISA) is a savings account available to UK residents aged 18 to 39.

You can save up to £4,000 per tax year into your account, and the government will add a 25% bonus, up to £1,000 each year.

The money can be used in two ways:

  • To buy your first home (worth up to £450,000)
  • Or to save for retirement, which you can access from age 60

Other withdrawals normally incur a 25% charge on the amount withdrawn, including the bonus. Exceptions include terminal illness with less than 12 months to live, and there is no withdrawal charge when the account is paid out after death.

How Does It Help When Buying a Home?

If you’re a first time buyer, the Lifetime ISA can significantly boost your deposit.

For example, saving £4,000 in a year gives you an extra £1,000 from the government, turning it into £5,000 without needing to take on any debt.

You can combine a Lifetime ISA with other deposit sources, such as savings, gifted deposits, or your own savings held in a Help to Buy ISA. However, you cannot use both a Lifetime ISA charge-free withdrawal and a Help to Buy ISA government bonus for the same home purchase.

You can also apply for a mortgage jointly, even if only one of you has a LISA.

We’ll help structure your deposit correctly and explain how it can be used with different lenders.

When Can You Use the Lifetime ISA?

At least 12 months must have passed since your first payment into the Lifetime ISA before you use the funds for a qualifying home purchase.

So if you’re thinking about buying in the next year or two, it’s worth opening one now, even if you’re not ready to start saving large amounts straight away.

The property you’re buying must be your first home, be worth no more than £450,000, and be purchased with a mortgage.

If you’re using a Lifetime ISA as part of your deposit, the money will be transferred directly to your solicitor at the point of purchase.

You won’t need to withdraw it yourself.

Can You Use It With a Mortgage in Hull?

Yes, many mortgage lenders accept Lifetime ISAs as part of your deposit, including for properties in and around Hull.

It’s treated the same as any other cash deposit, but the key is making sure the timeline and paperwork are correct.

Some lenders may ask for confirmation of the bonus amount and details of how long the account has been open.

If you’re saving for your first home and want to understand how the Lifetime ISA fits into the mortgage process, we’re here to help.

We’ll talk through your savings strategy, confirm how it affects your borrowing power, and show you which lenders will support your plans.

Whether you’re just getting started or already have a LISA in place, we’ll help you make the most of it when the time comes to buy.

Date Last Edited: 10/20/2026