A Lifetime ISA is a savings account where the government adds a bonus to what you pay in. The savings and bonus can go towards your first home.
First-time buyers who opened the account within the age window shown below and are buying with a mortgage. The home must be within the price limit, and the account must have been open for the qualifying period.
You save into the account and the bonus is added to your payments. When you buy, your conveyancer or solicitor asks the account provider for the funds, which are paid directly to them towards the purchase.
Taking money out for any other reason, apart from later life or serious illness, carries a withdrawal charge that can cost more than the bonus you received. Leave time for the funds to reach your conveyancer before completion, as the provider pays them and not you.
Each rule in its primary source's own words, with the date it applies from.
A buyer must hold a Lifetime ISA, which can only be opened at 18 or over and under 40.
. Start date: the source states no start date, so this is the day it was last updated.You must be 18 or over but under 40 to open a Lifetime ISA.
The buyer using a Lifetime ISA must be buying their first home.
. Start date: the source states no start date, so this is the day it was last updated.You can use your savings to help you buy your first home if all the following apply:
The purchase must be at least 12 months after the first payment into the Lifetime ISA.
. Start date: the source states no start date, so this is the day it was last updated.you buy the property at least 12 months after you make your first payment into the Lifetime ISA
The home must cost £450,000 or less.
. Start date: the source states no start date, so this is the day it was last updated.the property costs £450,000 or less
Above £450,000, the savings can go towards the home less a 20% withdrawal charge.
. Start date: the date the source states.Individuals will now pay a 20% withdrawal charge when they purchase a property over the property price cap (£450,000).
You must be buying with a mortgage.
. Start date: the source states no start date, so this is the day it was last updated.you’re buying with a mortgage
A conveyancer or solicitor must act for you; the ISA provider pays the funds to them.
. Start date: the source states no start date, so this is the day it was last updated.you use a conveyancer or solicitor to act for you in the purchase - the ISA provider will pay the funds directly to them
Above £450,000, the savings can go towards the home less a 25% withdrawal charge.
. Start date: the source states no start date, so this is the day it was last updated.You’ll pay a withdrawal charge of 25% if you withdraw cash or assets for any other reason
Answer what you know. Each rule is checked against your answers, and anything left blank shows as a fact the check still needs.
As of 12 Nov 2026. Lenders, providers and councils make the final decision.