The Lifetime ISA (LISA) is a government scheme that allows you to save
up to £4,000 per year tax-free. The government will then add a 25% bonus
on top of all contributions. Up to £1000 per tax year.
A LISA can be used to buy your first home or for retirement. Money can
only be withdrawn for your first property or after the age of 60. If you
withdraw the money for any other reason, you will be charged a 25%
penalty, and actually lose money.
This is an incredibly powerful way to save for your first home, and not
enough people know about it.
The average deposit people put down for a house is 15% of the house
value. But the more you put down, the better the mortgage rates you can
get. This can save you tens of thousands of pounds over the life of your
mortgage.
