In recent years, rising property prices and interest rates have made it more difficult to get onto the property ladder. Indeed, according to Uswitch, the
In recent years, rising property prices and interest rates have made it more difficult to get onto the property ladder. Indeed, according to Uswitch, the
If you’re saving for your first home, a Lifetime ISA can help you reach your goal and have you unlocking the door to your new home in no time.
I want to
If you’re in the market for a first home, the knowledgeable team at UKMC can help you understand your options.
If you have a Lifetime ISA, we’ll take the time to explain clearly how you can use the funds for a deposit.
At UKMC, we’re passionate about supplying high-quality mortgage advice tailored to your circumstances.
Don’t just take our word for it; we currently have more than 400 positive reviews on Trustindex, so why not book your consultation today to see how we can assist?
For those wondering ‘what is a lifetime isa?’, it’s a type of savings or investment account that can be used to help you get onto the property ladder by buying your first home or to save for retirement.
Like many similar savings schemes, the Lifetime ISA has specific eligibility criteria.
How does a lifetime ISA work?
A Lifetime ISA allows savers to put up to £4,000 towards their first home or retirement each tax year. Any interest earned is tax-free.
The Government puts in a 25% bonus, so there is there potential to get an additional £1,000 every year. This bonus is paid to you for every month you deposit money into the account, and the precise sum is calculated based on your own contributions.
What are the benefits?
It’s an ideal solution for those who want to benefit from both the Government bonus and accrued interest, as well as if you want a relatively risk-free option that keeps your savings in cash. For those planning on using the Lifetime ISA savings to buy a house, keeping the money in cash can be a safer option if you’re planning on buying a home soon.
As this process cannot be carried out without the relevant legal professionals, it’s important to reach out to informed professionals who can guide you. So why not arrange for a consultation today to obtain further information?
What are the risks?
A Lifetime ISA involves depositing savings in a cash account similar to a regular savings account.
Of course, the added bonus paid by the Government differentiates the two. It’s important to note that interest rates will vary between different providers.
With this option, you invest your money in stocks, bonds, or other financial instruments. This can be advantageous because there is a possibility of receiving higher returns. However, it also relies on favourable market fluctuations, which is riskier than keeping your money as cash. You can still benefit from the Government bonus but, together with your own contributions, it’s invested on the stock market.
Other types of Lifetime ISAs include a combination of cash together stocks and shares; some providers offer a mix of both. This enables savers to manage their own funds in a way that aligns with their risk tolerance and financial goals.
Yes, you can have both at the same time. However, you can only use the bonus from one of them when buying your first home.
In theory, yes. Providing you’re buying a property with another person who is also a first-time buyer – for example, you and a partner buying a home together and you both have a Lifetime ISA.
To understand more about the different types of Lifetime ISAs, don’t hesitate to complete our call back form today.
For those considering whether to open an ISA lifetime account, there are specific requirements you must to comply with.
You must be over 18 but under 40.
To continue paying into a Lifetime ISA, you must be a resident in the UK, unless you’re a crown servant (such as in the diplomatic service) or their spouse or civil partner.
Each individual can have one Lifetime ISA per tax year.
A Lifetime ISA is just one of the flexible savings options that you may consider. However, it’s important to reach out to professional financial advisors to help make an informed decision.
At UKMC, our team of mortgage advisors are always ready to guide you.
Whether you want to find out more information about Lifetime ISAs, or simply want advice relating to your own personal situation, we can be of help.
Find expert guidance, and all the information you need to make informed decisions on your path to homeownership.
UK Mortgage Centre Limited is an Appointed Representative of Refresh Mortgage Network Limited. Refresh Mortgage Network Limited is authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register under firm number 1019794.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments. The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages.
The Financial Conduct Authority does not regulate will writing and taxation and trust advice.
You may be charged a fee for your advice. A typical fee is £495, which would be payable when you receive your mortgage offer. Your dedicated advisor will discuss this further on your free initial phone call.
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