Lifetime ISAs: all you need to know

Tenants | Mon 29 Jul 19

So you’ve just moved into your new rental property, you’ve hung the pictures on the wall and unpacked your boxes. What are you going to do with the money that you saved on your deposit by buying a Zero Deposit Guarantee?

If you are thinking of buying a property in the future, one thing you could consider is investing your savings in a lifetime ISA (LISA).

What is a LISA?

LISAs were launched in 2017 and according to many people it has been a bit of a flop. They are worth a close look though especially if you are looking to purchase a property in the future.

LISAs allow you to save up to £4000 every year towards your first home (or your retirement) and the government adds a 25% bonus in addition to everything that you save. This means that if you have saved £1000 on your deposit by buying a Zero Deposit Guarantee, you could get a government bonus of £250, effectively funding the cost of your guarantee!

Anyone aged 18 to 39 can open a LISA, so most tenants can benefit from this scheme. You are also allowed to transfer from one provider to another if you find a better interest rate, so the overall return you could get from a LISA by the time you buy your first home could be significant.

How do you find the best deals?

Which has a list of Lifetime ISA providers and there some useful information available on Money Saving Expert