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

If you withdraw the money for any other reason, a penalty applies, so it’s best used for its intended purpose unless you’re certain you no longer plan to buy.

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 a Help to Buy ISA if you opened one before the deadline.

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?

You must have had the LISA open for at least 12 months before using it to buy a property.

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: 01/07/2026