Moneybox Lifetime ISA

A head start towards your first home.

If you’re looking to buy your first home, it may be easier than you think with the new Lifetime ISA.

“A NO-BRAINER for almost every first-time buyer.”

Martin Lewis on Lifetime ISAs,, 5 April 2017.

Here are the 4 things you need to know:

This means that for every £4 you pay in, you get £1 for free. You can save up to £4,000 per year into your Lifetime ISA, giving you a potential annual bonus of £1,000. Like a regular ISA, all gains are tax-free.

You can use your Lifetime ISA to buy your first home, up to the value of £450,000. Better still, if you’re buying with another first-time buyer, both of you can use your Lifetime ISA – doubling your potential bonus.

Once open, you can continue to pay in until you turn 50.

The 25% government withdrawal charge means that you’d lose £6.25 per £100 you pay in (excluding gains/losses and fees). Therefore, you should only pay in money that you’re sure will be used toward your first home or retirement.

As with all investing, your capital is at risk and you could get back less than you invest if the value of your investment falls. Tax treatment depends on individual circumstances and may be subject to change.