How to use your Lifetime ISA to get a mortgage

If you have saved enough money in your Lifetime ISA (LISA) and you’re ready to get your first home, we’ve created an easy guide to help make your first step onto the property ladder as seamless as possible.

Am I eligible to use my LISA?

There are certain requirements you have to meet in order to withdraw from your LISA penalty-free. These are:

• The property must cost £450,000 or under
• You are getting your mortgage at least 12 months after opening and funding your LISA
• You use a conveyancer or solicitor to act for you in the purchase
• You are a first time buyer
• The property will be your main residence

Make sure that you meet all the criteria before going forward with getting your mortgage otherwise you will be charged a 25% withdrawal penalty. 

How much can I borrow?

Once you know you are eligible and meet the criteria to use your LISA for your first home, you need to find out how much you can borrow from your mortgage lender.

As well as a range of other factors, lenders will take into consideration your salary, or joint salary if you are getting a joint mortgage, your credit score and your outgoings, in order to determine how much you can borrow.

Our mortgage affordability calculator can give you an estimate of what you would be able to borrow. However, if you would like a definitive quote, you can get a Mortgage in Principle from your lender.

How do I access my LISA?

When getting a mortgage, your tax-free LISA, including the government bonus, must be paid directly to your conveyancer or solicitor. If you withdraw the money directly yourself, you will be charged.

Your conveyancer will need to apply directly to your LISA provider to release the funds in your account. The money has to be released less than 90 days before you get the keys and if the sale falls through, your conveyancer or solicitor will repay the money (including your bonus) into your LISA account.

How is the bonus paid?

Your bonus is calculated and deposited into your account on a monthly basis.

The amount you receive is based on how much you have contributed to your account from the 6th of the month to the 5th of the succeeding month. The bonus will be added to your LISA within two weeks of the 20th of the following month.

So if you contribute £100 to your LISA between the 6th March and the 5th April, you will receive an added 25% (£25) in your LISA account within two weeks of the 20th April.

Can I use my LISA for a joint mortgage?

Yes, you can use your LISA for a joint mortgage, so long as it is the first property you will be purchasing.

If you're buying a house with another person who also has a LISA, you can also use both LISAs to purchase the house if you are both first time buyers. If the person you are sharing the mortgage with is not a first time buyer (or doesn't have their own LISA), you can still use your LISA to contribute to the mortgage.

If you want to know more about buying your first home, we have more information and tools just for you. Our first time buyers’ guide also offers a fantastic step-by-step guide to getting your first mortgage.