If you use the Lifetime ISA to save for buying your first home, it must be:
It must be at least 12 months since the first contribution was made to your Lifetime ISA before you can withdraw funds from it to buy your first home.
The type of Lifetime ISA you choose will depend on your attitude to risk and reward.
However, as investments are for the longer term, if you plan to buy your first home within three years you should probably open a cash Lifetime ISA.
If you’re planning to buy your first home in more than three years time, you may want to consider a stocks and shares Lifetime ISA. Investing in stocks and shares offers the possibility of better returns in the long run and could help you reach your goal faster. However, remember that your capital is at risk and the value of your investment can go down as well as up.
Yes you can, but the overall value of the house can’t exceed the £450,000 limit.
No. If you already own, or part-own, property anywhere else in the world you can’t use the Lifetime ISA to save for a deposit to buy property in the UK.
Once you have enough money put away and you’re ready to buy your home, you'll probably need a mortgage. It can be tricky to know which mortgage to go for, or even where to start. We’ve teamed up with Habito to help with this.
Habito is a free online mortgage broker, which means they’ll give you mortgage advice and find you the right mortgage out of 20,000 options.
As part of our affiliate agreements, Nutmeg receives a commission payment for every successful product purchase arising from this link. Nutmeg is not involved in the actual purchase of the product and the information above does not constitute financial, legal or tax advice. Other mortgage services are available.