Using your Lifetime ISA to buy your first home

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

If you opened a Lifetime ISA to save for your first home, there will come a time when you are ready to buy 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.

How to buy a house - our guide

Here’s our step-by-step guide to buying a house.

Find out more

How to use your Lifetime ISA

  1. What can I afford?

    Establish how much you can afford and how much deposit you will need. If you're using your Lifetime ISA, the cost of your new home mustn't exceed £450,000 and to avoid the government withdrawal charge, you must have made your first payment into the Lifetime ISA at least 12 months previously.

    Please visit our affordability quick calculator to give you an idea of how much you could borrow.

    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 after completion when you use a Skipton mortgage to buy your first home. Terms and conditions apply.
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  3. Accessing my savings

    You’ll need to complete an Investor Declaration form to access your Lifetime ISA funds without paying a withdrawal charge and the form needs handing to your conveyancer who will in turn complete a Conveyancer Declaration. Once your Lifetime ISA provider receives the correct information from your conveyancer, the money should be transferred to them 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.

    If you’re using the Shared Ownership scheme to buy your first home, 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.

Forms you need to access your Skipton Lifetime ISA

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

Next steps

Talk to us

Having a financial review is a great way to check whether your savings are on track

Take the next step

Speak to us

Either via webchat or call us on0345 607 9755

Apply online

Find out more and apply for our Lifetime ISA

Apply online

Learn more about Lifetime ISA

Lifetime ISA Frequently Asked Questions

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

Read our FAQs

Using a Lifetime ISA to help fund retirement

Using your Lifetime ISA to fund your retirement? We’ve put together what you need to know.

Lifetime ISA for retirement
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
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