The Lifetime ISA (independent savings account) is a great addition to the government-led mortgage schemes. In theory, it’s not really a scheme, it’s an independent savings account that builds up overtime through help from the governement. These funds can help you purchase your first home.
The Lifetime ISA is not to get confused with the Help to Buy ISA, they are similar but there are some differences. Let’s take a look at the Lifetime ISA, how it works and why it could benefit you.
In your Lifetime ISA, your savings will grow interest-free. Each year, your total amount saved in the ISA will be increased by the government by 25%.
The maximum that you can deposit each year is £4,000. This may seem like a lot, however, at the end of the year, you’ll receive an extra £1,000 in your ISA account.
Your ISA savings can be used for two different things. Firstly, you can use it to buy your first property. If you are thinking about starting your buying a home journey as a First Time Buyer in Leicester, this scheme could be perfect for you. Lifetime ISAs can especially be useful if you’re thinking of holding off your mortgage journey for a little while longer.
Alternatively, you can use the Lifetime ISA for later in life savings. Unfortunately, as a Mortgage Broker in Leicester, we can only help clients looking to utilise the savings account to fund a deposit for their first home. If you are thinking of using the Lifetime ISA for this second reason, you can find out more information on the Lifetime ISA government website.
Like most government schemes, you will have to qualify for the ISA before you can use it. Here are the requirements:
Buying a home
Further information on the Lifetime ISA can be found on the official government’s official page here: https://www.gov.uk/lifetime-isa.
If you’re already feeling as if this is right for you, get in touch with a Mortgage Broker in Leicester like us and we can help you get your Lifetime ISA journey started.
If you’re curious about more government-led mortgage schemes, now could be the perfect time to take a look and find out what’s available. There are lots of different schemes available, so it’s definitely worth the look! Starting off your mortgage journey through a government scheme could massively boost your chances of being accepted for a mortgage.
Get in touch with our brilliant Mortgage Advisors in Leicester and book your free mortgage appointment today. We don’t just specialise in Lifetime ISAs, we work with the Self Employed, Remortgages and Buy to Lets; any mortgage situation, we will try our best to help! We love a good challenge and we would love to try and help you make that first step onto the property ladder.