Using your Lifetime ISA to buy your first home

If you opened a Lifetime ISA to save for your first home, there will come a time when you are ready to begin your property search and withdraw your savings.


There is a lot to consider so we’ve pulled together what you need to know about using your Lifetime ISA to buy your first home. And if you’re ready to take out a mortgage we can help with that too – our qualified mortgage advisers will help you find a mortgage for you from our range, guide you through the process and provide the support you need.

Exclusive mortgage deals for Lifetime ISA holders

  • Exclusive 95% loan to value mortgage with £1,000 cashback and no upfront fees for those using a Lifetime ISA to buy their first home
  • Additional £250 Cashback on any Skipton Mortgage for those with a Skipton Lifetime ISA.
  • For Lifetime ISA holders who are eligible to withdraw funds for their first house purchase without a withdrawal charge.

How to use your Lifetime ISA

  1. What can I afford?

    Establish how much you can afford and how much deposit you will need. To use your Lifetime ISA, you must have made your first payment into it at least 12 months ago and the cost of your new home must not exceed £450,000.

    We can talk you through how much we may be able to lend you based on your income and expenditure and, when you’re ready, take you through a Decision in Principle (DIP).

  2. Getting a mortgage

    Once you have found your dream home, you’ll need to arrange a mortgage. Fixed, tracker or discount? One of our Mortgage Advisers can advise you by telephone or video call on a mortgage from our range that meets your needs, and they can take you through the full application process, all in a friendly, no pressure environment.

    If you're a Skipton Lifetime ISA customer you can get £250 cashback back when you take out your first mortgage with us. Browse our products.

  3. Accessing my savings

    You’ll need to complete an Investor Declaration form to access your Lifetime ISA funds and the form needs handing to your conveyancer who will in turn complete a Conveyancer Declaration confirming your eligibility to withdraw penalty free. Once we receive the correct information from your conveyancer, your Lifetime ISA provider will confirm to you before transferring the money to your conveyancer within 30 days. From this point the purchase needs to complete within 90 days or your conveyancer needs to apply for an extension.

    If the purchase doesn’t proceed and the money is not returned (unless an extension has been agreed) the government withdrawal charge of 25% of the amount withdrawn will apply.

Forms you need to access your Skipton Lifetime ISA

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

Frequently asked questions

If you're using your Lifetime ISA for your first home, the money can only be used for your deposit and it must be purchased with a mortgage, on a house valued at £450,000 or less.

You can use your Lifetime ISA to buy your first home 12 months after your first payment into the account. If you’ve transferred to us from a Lifetime ISA with another provider the 12 months starts from the date you paid into the original Lifetime ISA.

If you withdraw before then, even if it is to buy your first home, the government withdrawal charge will apply.

If both you and the person you are buying your home with are first time buyers, you can both use your Lifetime ISA to put towards the purchase of your home without paying a withdrawal charge.

If you are a first time buyer, but the person you are buying your home with has owned a property before then they will not be able to use their Lifetime ISA (if they’ve opened a Lifetime ISA too) towards the purchase of your home without paying a withdrawal charge. However you, as a first time buyer, would still be able to use your own Lifetime ISA towards the price of the home that you are buying together.

In both cases the price of the home you’re buying together must not exceed £450,000 if you wish to use your Lifetime ISA towards it without paying a withdrawal charge.

The purchase price of your new home must not exceed £450,000 and the property must be purchased in the UK with a mortgage, but not a Buy to Let mortgage. You must occupy the property as your main residence immediately on completion.

Please note – if you or your spouse/partner are a UK Crown employee serving overseas you must intend to reside in the UK and use the property as your main residence in the future.

Conveyancers can download this from our solicitors' page or you can download it for them from this page and take it to them with your completed Investor Declaration.

If your account is closed, your account would be reinstated and the bonus paid in. We’d record a break in membership of the Society on the system if you don’t have any other accounts with us. We’d then contact you to confirm we’ve received the bonus and ask you what you’d like to do with the bonus amount received. If the bonus has been received after the house purchase has completed you would have to pay the 25% government withdrawal charge to receive the funds before the age of 60.

90 days from your conveyancer receiving the funds from us. If it’s taking longer than 90 days the conveyancer can write to us to request an extension.

The conveyancer must return the funds within 10 days of the house purchase falling through, and the amount withdrawn will be paid back in to your account. If the first house purchase withdrawal had closed the account, it will be reopened when the funds are returned, but your membership will not be backdated (if this was the only Skipton account you held). If the conveyancer returns less than the amount withdrawn for the first house purchase, or doesn’t return the funds, you will be charged a 25% government withdrawal charge on the shortfall amount.

The conveyancer is able to request withdrawals from the account as many times as you wish up to completion, there is no minimum withdrawal amount. We’d require completed declarations from both you and your conveyancer each time a withdrawal is requested during this process.

  • 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.

Need help?

For any additional support when using your Lifetime ISA, please get in contact with us

Call us

To speak to a member of our team, please call us on 0345 600 5967


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