Lifetime ISA Explained in Coventry

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What is a Lifetime ISA?

How can I use my savings?

Are there any restrictions?

Mortgage Advice in Coventry

Mortgage Advice in Coventry

The Lifetime ISA scheme provides a great opportunity for First Time Buyers to get onto the property ladder and many people don’t even know what it is. The scheme is often confused with the Help to Buy ISA; they have similarities but they also have their differences.

Since first time buyers in Coventry massively benefit from this scheme, as your Mortgage Broker in Coventry, we thought that it would be a great idea to share with you what the Lifetime ISA is and how it can help you start your mortgage journey.

What is a Lifetime ISA?

To make it nice and simple, a Lifetime ISA is a savings account where your money grows tax-free. As a bonus, on top of whatever you save, the government will gift you an extra 25% of your savings.

Unfortunately, there is a catch though. There is a maximum amount that you can save each year and it’s only £4,000. On the other hand, if you include the extra 25% bonus, you will get an extra £1000, making your overall savings £5,000.

How can I use my savings?

The proceeds of your savings account can be used for two different things. Firstly, the Lifetime ISA can be used to purchase your first property. So, if you are a first time buyer in Coventry and are looking to hold off your First Time Buyer mortgage journey for just a little bit longer, the Lifetime ISA could be for you.

The second use for the Lifetime ISA is for savings for later in life. Although, as we are a Mortgage Broker in Coventry, we only see clients who are using the ISA to purchase their first home. So if this is what you want to use the Lifetime ISA for, you should check out the official governments Lifetime ISA page here: https://www.gov.uk/lifetime-isa.

Are there any restrictions?

In order to qualify for the Lifetime ISA, you need to meet a few different requirements:

First Time Buyer making a purchase…

• 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 useful information on the Lifetime ISA, you can check out the official government’s 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 Coventry and we will help you get the ball rolling.

Mortgage Advice in Coventry

Does the Lifetime ISA scheme appeal to you? Do you feel like it could benefit your First Time Buyer mortgage journey? If so, now is the perfect time to speak to your Mortgage Advisor in Coventry.

We don’t just specialise in giving Lifetime ISA Mortgage Advice in Coventry, we cover a wide variety of mortgage situations. We have got you covered and are here to help!

We have been in this game for over 20 years now and we can’t wait to share our knowledge with you.

Date Last Edited: December 6, 2023