Lifetime ISA (LISA)

  • Deposit required: A minimum payment of £1 required to qualify the account as 'open'
  • Headline benefits: The government will contribute 25% on up to £4000 saved in a LISA account every year – that is a Government top up of up to £1000 each year.
  • Headline requirements:  First time buyer aged 18-39 purchasing a first home up to the value of £450k.

Key actions

Learn more


The Lifetime ISA (LISA) is a long-term savings product intended to support younger people saving for their first home, or for later life. Up to £4,000 can be saved each year, attracting a government bonus of 25% on each new payment. Funds can be withdrawn without charge 12 months after opening the LISA , if used as a deposit for the account holder’s first home, subject to certain conditions.

Frequently asked questions

Adults aged 18-39, saving for a first home or later life.

To open a Lifetime ISA you must be a resident in the UK, unless you’re a crown servant (for example, in the diplomatic service), their spouse or civil partner. You can save up to £4,000 in your Lifetime ISA each year. This counts towards your annual ISA limit, which is £20,000 for the 2021 to 2022 tax year. To use the funds towards a first home, the property value must be under £450,000

During the 2019-20 tax year, 545,000 individuals subscribed savings to a LISA.

  • You must be a first-time buyer aged 18-39.
  • Your property value cannot exceed £450,000
  • You must buy with a mortgage
  • You must live in the property as your main residence
  • You must buy the property at least 12 months after you open the Lifetime ISA and make your first savings
  • You use a conveyancer or solicitor to act for you in the purchase – the ISA provider will pay the funds directly to them

Funds can be withdrawn from a Lifetime ISA without charge to purchase a first home, in the case of terminal illness or from the age of 60. All other withdrawals are subject to a 25% government charge. If you have a Lifetime ISA and a Help to Buy ISA, you can only use the government bonus from one of them to buy your first home.

If you are buying with someone else that has a Lifetime ISA, they can use their savings and government bonus too. Anyone who already owns or has a legal interest in property will pay a 25% withdrawal charge to use their Lifetime ISA savings.

How to apply

  1. 1

    Find a provider offering the LISA product (Banks, Building Societies, other financial providers)

  2. 2

    Contact the provider directly to open the account

  3. 3

    A minimum payment of £1 required to qualify the account as ‘open’

Process for applying/accessing the scheme

Between the age of 18 and 39; at least 12 months before intending to purchase a property

Individuals can save into their account and earn a bonus on any new payments until their 50th birthday. Accounts will stay open and savings will continue to earn interest or investment returns after 50.

Next steps

This depends on your provider