As a Mortgage Broker in Leeds, we are always asked: “What is a Lifetime ISA?”. More often than not, people get it confused with Help to Buy ISA. Even though both schemes share similarities, they also have their differences.
Here is everything that you need to know about the Lifetime ISA and how it could be right for you:
To make it simple, a lifetime ISA is a savings account where your money grows tax-free. On top of your savings, the government will gift you a bonus of 25% extra. You can only save a maximum of £4,000 a year, although, it will be topped up to £5,000 when you include the extra £1,000 through the governments 25%.
Sounds great right? Well, it doesn’t come that easy, there are some restrictions to the Lifetime ISA and you have to qualify for it first.
In order to access the Lifetime ISA, you have to meet some certain requirements:
For more useful information on the Lifetime ISA, feel free to visit the government’s official page: https://www.gov.uk/lifetime-isa.
Alternatively, if you already feel like this scheme is for you, you should get in touch with your Mortgage Broker in Leeds and we will help you make that first step onto the property ladder.
If you are a First Time Buyer in Leeds, the Lifetime ISA could be a great route for you to take. Also, since you can only use it for your first property, it works out in your favour.
Even if you are holding off on your first property purchase, it could be best to invest sooner rather than later. Getting a head start could prove extremely beneficial in the future. If you manage to save for a long time using this scheme, you would have more than enough for a deposit which will strengthen your mortgage application.
A Lifetime ISA is easy to apply for, you can do this through your bank, online or get help from a Mortgage Broker in Leeds like us. If you are wanting help with anything else, remember that we don’t just specialise in Lifetime ISAs. A Mortgage Broker in Leeds like us can help you with all sorts of mortgage scenarios; whether you are Self Employed in Leeds, looking to Remortgage or interested in Buy to Let mortgages, we are sure that we will be able to help.
If you think that the Lifetime ISA could be for you, feel free to get in touch and we can get the ball rolling together. We love helping you through your mortgage journey and taking all of the stress off your back. We hope to hear from you soon!