Lifetime ISA Explained in Hull

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What is a Lifetime ISA?

Where can I use my savings?

Are there any restrictions?

Trusted Mortgage Advice in Hull

ISA Mortgage Advice in Hull

As a mortgage broker in Hull, we are often asked about lifetime ISAs, however, it’s rare for applicants to actually know what they are. People tend to get this scheme mixed up with the Help to Buy ISA, they are similar but there are some differences.

Here is all the information that you need to know about the Lifetime ISA and how it could be right for you:

What is a Lifetime ISA?

To put it simply, a Lifetime ISA is a savings account where your money grows tax-free. On top of whatever you save, the government will give you an extra 25% bonus. Sounds great right…?

Of course, there’s a catch though; there is a maximum to how much you can save each year and it’s only £4,000. On the other hand, this means that the 25% bonus you would receive would be an extra £1,000.

Where can I use my savings?

The proceeds of your account can be used for two different things. Firstly, the Lifetime ISA can be used to buy your first property. So, if you are a first time buyer looking to take out a Lifetime ISA in Hull and are looking to hold off your mortgage journey for a little while longer, a Lifetime ISA could be for you.

Secondly, you can use a Lifetime ISA as savings for later in life, however, as we are a Mortgage Broker in Hull, we only see clients who are using the ISA as their deposit for their first home.

Are there any restrictions?

In order to qualify for the Lifetime ISA in Hull, you must meet some certain requirements:

Buying a home

• This has to be your first home purchase
• You can only add a total of £4,000 a year
• The property that you are buying must cost £450,000 or less
• You must be under the scheme for a least a year before you can make a purchase
• You must be over the age of 18 but under 40

For more information on the Lifetime ISA, you can check out the official government’s page here: https://www.gov.uk/lifetime-isa.

If you already know that this is for you, feel free to get in touch with your mortgage broker in Hull and we will help you get the ball rolling.

Trusted Mortgage Advice in Hull

Are you curious about more schemes that are out there or maybe you are interested in the Lifetime ISA and want to begin your mortgage journey? If so, now could be the perfect time to get in contact with an experienced mortgage advisor in Hull. We don’t just specialise in Lifetime ISAs, we have experience with Self Employed mortgages, Remortgages, Buy to Lets; any mortgage situation, we know how to help! We love a good challenge and we would love to try and help you make that first step onto the property ladder.

Date Last Edited: 10/10/2023