Mortgage Advice in Sheffield
As a Mortgage Broker in Sheffield, we deal with all different types of mortgage enquiries. One in particular that seems to cause a lot of confusion is the Lifetime ISA. People seem to get it mixed up with the Help to Buy ISA. Despite having similar names, they are different to one another.
Here is everything that you need to know about the Lifetime ISA and why it could be your best mortgage option:
What is a Lifetime ISA?
To put it simply, a Lifetime ISA is a savings account where your money grows tax-free. As a bonus to whatever you save, the government will gift you an extra 25% bonus. Sounds great right…?
Of course, there is a catch. There is a maximum to the amount that you are able to save every year and it’s only £4,000. However, this amount is without the government’s extra bonus, so your total would be £5,000.
Where can I use my savings?
Your Lifetime ISA savings can be used for two different things. First of all, the scheme can be used for your first property purchase. Are you a First Time Buyer in Sheffield? If so, this scheme could be perfect for you then. It’s particularly helpful if you don’t want to start your mortgage journey just yet and want to gather some additional funds to put towards your first home.
Secondly, you can use the Lifetime ISA as savings for later in life, however, since we are a Mortgage Broker in Sheffield, we only see clients who are using the Lifetime ISA to buy their first home. So if you are looking to use the scheme to save for later life, you can find more useful information here on the government’s official website: https://www.gov.uk/lifetime-isa.
Are there any restrictions?
In order to qualify for the Lifetime ISA, you must meet certain requirements. Here are the requirements if you are using the scheme to buy your first property:
- This has to be your first home purchase
- You can only add a total of £4,000 a year
- The property that you are buying must cost £450,000 or less
- You must be under the scheme for a least a year before you can make a purchase
- You must be over the age of 18 but under 40
For more information on the Lifetime ISA, you can check out the official government’s page here: https://www.gov.uk/lifetime-isa.
If you already feel like you want to start your mortgage process with this scheme, feel free to get in touch with your Mortgage Broker in Sheffield and we will help you get the ball rolling.
Mortgage Advice in Sheffield
Are you curious about other alternative schemes that are available to you? Are you certain that the Lifetime ISA is for you? Either way, we are here to help!
Now could be the perfect time to get in touch with your Mortgage Advisor in Sheffield. We don’t just specialise in Lifetime ISAs, we have lots of experience working with situations such as Self Employed mortgages, Remortgages, Buy to Lets; and any mortgage situation, and we will do our best to try and help. Your Mortgage Advisor in Sheffield loves a good challenge, don’t hesitate to get in touch today.
Date Last Edited: September 15, 2023
