“What is a Lifetime ISA?” is a question that we receive on a regular basis as a Mortgage Broker in Liverpool. Despite applicants having heard of Lifetime ISAs, most of them don’t actually know what they are. People occasionally get them confused with the Help to Buy ISA, although they are similar, they also have their differences. Plus, the Help to Buy ISA is currently unavailable (as of March 2020).
Off the back of the interest in Lifetime ISAs, we decided to make a video and an article on the subject. Firstly, let’s look at the basics…
To put it simply, a Lifetime ISA is a savings account where your money grows tax-free. The government will also give you an extra 25% on top of whatever you save…sounds good right?
However, there is a small catch, you can only save a maximum of £4,000 a year and this total is without the government’s extra 25%. So, if you manage to save the full £4,000 and then you account for the extra £1,000, you can get a maximum of £5,000 a year.
The proceeds of your account can only be used to purchase your first property. You can’t use the savings on anything else but a home.
So, if you are a First Time Buyer in Liverpool but still want to hold off on your mortgage journey, you could invest now to prepare for that step onto the property ladder in the future. As a Mortgage Broker in Liverpool, we always advise applicants, especially first time buyers, to prepare sooner rather than later.
In order to qualify for the Lifetime ISA, you must meet some certain requirements:
If you want to find out some more helpful information on the government’s Lifetime ISA, feel free to check out their official Lifetime ISA page here: https://www.gov.uk/lifetime-isa.
If you are happy to go straight to a Mortgage Advisor in Liverpool and want to speak to them about your options, don’t hesitate to get in touch and we can talk you through your Lifetime ISA options.
If you think that the Lifetime ISA is for you, it may be time to get Mortgage Advice in Liverpool. Firstly, when you approach a Mortgage Broker in Liverpool like us, we can see if the Lifetime ISA scheme is right for you and can look at whether it will benefit your personal and financial situation as a First Time Buyer in Liverpool.
Even if you are looking for Mortgage Advice in Liverpool about a different mortgage situation, you should still get in touch. We offer a free mortgage consultation for every customer and every mortgage scenario. Whether you’re Self Employed in Liverpool, interested in Buy to Let mortgages or need Specialist Mortgage Advice, we have got your back and we can’t wait to try and help you through your mortgage journey!