Using your Lifetime ISA to buy your first home

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After all the waiting and saving the moment may have finally come to use your Lifetime ISA to buy your first ever home. But what do you do next? How do use the money you’ve saved up to buy your first home? It’s an exciting time, but a confusing one so we’re here to help make it as simple as possible.

Helping people into homes is something that we’ve been doing since 1853, so you can trust us to help you too.

A good place for your mortgage

£250 cashback

Exclusively for Lifetime ISA customers (terms and conditions apply^)

Borrow up to 95% of your property value

Minimum 5% deposit required on selected mortgages

No charge for mortgage valuation

We won’t charge you for valuing your property for mortgage purposes

How to use your Lifetime ISA

Step 1 – Find out how much you could borrow

Get started by using our Affordability Calculator for a detailed check based on your income and outgoings. This will give you an idea of how much you could potentially borrow. At the end, you can also request a Decision in Principle (DIP), if you're ready, or you can do this within 30 days of receiving your calculation.

Remember, the cost of your new home mustn’t be over £450,000 if you’re planning to use your Lifetime ISA. Plus, you must have made your first payment into the Lifetime ISA at least 12 months before withdrawing funds to avoid the 25% government withdrawal charge.

Affordability calculator

Step 2 - Arranging a mortgage

You’ve found a home that's right for you and it’s time to make an offer. Many sellers and estate agents may ask you to provide proof of a Decision In Principle (DIP) or Agreement in Principle (AIP), as assurance that you can get a mortgage. Our DIP is a non-binding agreement from us showing how much we may be prepared to lend based on your income and expenditure.

Our Skipton Mortgage Advisers can talk you through our range of mortgages for first time buyers, help you find one that's right for you and take you through the application process. We have a range of fixed and variable rates available and we also offer Help to Buy and Shared Ownership options, all backed by a level of service that’s earned us Which? Recommended Provider status.

Our First Time Buyer Mortgages

Step 3 – Releasing the money from your Lifetime ISA

We’ll hold on to the savings in your account until they’re needed by the conveyancer handling your purchase. So, when the time comes:

  • Pass on a completed Investor Declaration Form to your conveyancer
  • They will then complete their Conveyancer Declaration Form and send it to us
  • We release the funds to them, which can take up to 30 days
  • They then have 90 days to complete the purchase on your behalf.

If the conveyancer finds they need more than 90 days they can ask for an extension. If the sale doesn’t go ahead they simply return the money to us to put back into your Lifetime ISA. If the money is not returned (unless an extension has been agreed), the government withdrawal charge of 25% of the amount withdrawn will apply.

If you’re using the Shared Ownership scheme, your Lifetime ISA can be used towards the deposit when you buy your initial share, but it can’t be used without paying the government withdrawal charge to buy any further shares in future.

The paperwork you will need

Please ensure forms are both fully completed and submitted via your conveyancer.

^£250 Cashback mortgage terms and conditions

Subject to our normal affordability assessment and lending criteria at the time, Skipton Lifetime ISA customers who are buying their first home with a Skipton mortgage will be eligible for £250 cashback following completion of their mortgage. This offer is only valid for mortgages completing from 6 April 2018 to 30 June 2027. Cashback will be paid for new mortgages where at least one of the applicants is a Skipton Lifetime ISA customer buying their first home. If the mortgage is in joint names and with another Skipton Lifetime ISA holder, only one cashback amount will be paid. Cashback will only be available once.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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More information

Our guide to buying a house

Find out about each stage from applying for a mortgage to moving in.

Read our guide

Could our Lifetime ISA be right for you?

We cover the important facts, the things to think about, and information on the government bonus.

Our Lifetime ISA

Lifetime ISA Frequently Asked Questions

Read our frequently asked questions about Lifetime ISA to help you quickly find the answers you need.

Read our FAQs
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