Lifetime ISA Explained in Cambridge

Mortgage Advice in Cambridge

As a Mortgage Broker in Cambridge, we always get asked about lifetime ISAs, and 90% of the time, it’s because applicants don’t actually know what they are. People tend to get the Lifetime ISA confused 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 why 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. As a bonus to whatever you save, the government will gift you 25% extra. Sounds pretty good right…?

Of course, there’s a catch though; there’s 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 savings in your Lifetime ISA can be used for two different things. Firstly, it can be used to buy your first property, so if you are a First Time Buyer in Cambridge and you are planning to hold off on your mortgage journey for a little while longer, a Lifetime ISA could be for you. There’s nothing wrong about planning ahead and thinking about your future.

Secondly, you can use a Lifetime ISA as savings for later in life, however, as we are a Mortgage Broker in Cambridge, we only see clients who are using the ISA as their deposit for their first home. So if you are wanting to save for later in life, you can find more information here on the government’s official webpage: https://www.gov.uk/lifetime-isa.

Are there any restrictions?

In order to qualify for the Lifetime ISA, 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 helpful information on the Lifetime ISA, check out the government’s Lifetime ISA page here: https://www.gov.uk/lifetime-isa.

If you already feel like this is for you, feel free to get in touch with your Mortgage Broker in Cambridge and we will help you get the ball rolling.

Mortgage Advice in Cambridge

Are you wanting to learn about the different schemes that are out there or are you interested in the Lifetime ISA and want to begin your mortgage journey? Either way now could be the perfect time to get in contact with an experienced Mortgage Advisor in Cambridge. We don’t just specialise in Lifetime ISAs, we have experience with all different types of mortgage scenarios, these include 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.