Lifetime ISA for your first home
Savings support · withdrawal rules updated October 2026Put the savings bonus, property price and withdrawal process together before counting a Lifetime ISA in your deposit. This is a guide to the first-home rules, not a recommendation of an account, provider or investment.
United Kingdom · individual eligibility applies · Guidance checked 30 October 2026
- Savings bonus
Eligible contributions receive a 25% government bonus, up to £1,000 a tax year.
- Timing
The 12-month period starts with your first payment into the Lifetime ISA.
- Property price
£450,000 is the charge-free first-home threshold. Different withdrawal charges can apply above it.
Start with the account and bonus rules
You can normally open a Lifetime ISA aged 18–39, subject to residence rules, and must make the first payment before turning 40. Eligible contributions can continue until age 50. You can contribute up to £4,000 each tax year, with a 25% government bonus of up to £1,000. Contributions count towards the overall ISA allowance.
A Lifetime ISA can hold cash or investments. Investment values can fall, so the type of account and when you need the money require separate consideration. See the GOV.UK Lifetime ISA overview and HMRC eligibility guidance.
Check the whole property price
A charge-free first-home withdrawal requires a qualifying UK residential purchase costing £450,000 or less, an eligible mortgage and occupation as your main home. Previous residential ownership, including overseas, can affect first-time buyer eligibility.
The price test concerns the property rather than your mortgage or deposit. For Shared Ownership, the full sale value is used rather than just the initial share. Ask your conveyancer to confirm the applicable calculation and each buyer's position using HMRC's conveyancer guidance.
Use the right timing and withdrawal process
The 12-month rule runs from the first payment into your Lifetime ISA, not the date an empty account was opened. Confirm that date with the provider before relying on the money for your purchase.
Your conveyancer or solicitor arranges the purchase withdrawal and the provider pays them directly. Tell them early; an ordinary withdrawal to your current account can create a charge. Keep a separate budget for legal fees, surveys and moving costs. Read the official withdrawal guidance before requesting funds.
Understand the updated withdrawal charges
From 29 October 2026, first-home purchase withdrawals for properties costing more than £450,000 are subject to a 20% withdrawal charge. Other unauthorised withdrawals generally remain subject to 25%. Qualifying first-home purchases at or below £450,000 can remain charge-free. The purchase conditions and withdrawal procedure still matter.
A 25% charge can reduce your original savings, not just remove the bonus. Ignoring interest and investment movements, £4,000 of savings plus a £1,000 bonus makes £5,000. A 25% charge is £1,250, leaving £3,750. This example concerns a 25% charge, not the newer 20% purchase rule. Check HMRC's updated charge guidance with your provider and conveyancer.
The next steps
Check your position
Confirm first-time buyer eligibility, the full property price and your first Lifetime ISA payment date.
Map your deposit
List savings, bonuses and any family contributions, with separate money for purchase costs.
Coordinate the withdrawal
Ask your conveyancer and provider to confirm the conditions, any charge and the correct process.
What to prepare
Tick the points you have covered before a conversation. These are preparation notes; ticking them does not confirm eligibility.
Your questions, answered
Can two first-time buyers both use their LISAs?
Yes, if each independently meets the conditions. Both can use their eligible savings and bonus, but their allowances do not double the £450,000 property-price threshold for a charge-free purchase.
What if my partner has owned a home before?
You may still qualify personally. A partner who is not a first-time buyer cannot use their own account for a qualifying first-home withdrawal. Ask the conveyancer to check both positions.
Can I use both a Help to Buy ISA bonus and a LISA bonus?
If you have both accounts, you can use the government bonus from only one of them for your first-home purchase. Each joint buyer’s eligibility is assessed separately. Ask the providers and conveyancer before transferring or withdrawing money.
What if the purchase falls through?
Tell the conveyancer and provider promptly. Withdrawn funds must be returned through the proper process within the applicable deadlines. HMRC publishes guidance on first-home withdrawals.
Official guidance
Checked 30 October 2026. Availability, rules and lender criteria can change. Follow the official guidance and confirm the position before committing.
Other routes to consider
Shared Ownership mortgages
Buy a share and pay rent on the rest. See how the full housing budget fits together.
Explore the guide
First Homes scheme
A discounted home for eligible first-time buyers, with conditions on who can buy and sell.
Explore the guide
Your First Home scheme
The new equity-loan route announced for eligible new-build buyers. See what is known so far.
Explore the guideLet’s put your plans in context.
Tell me where you would like to buy, how far you have got and which route interests you. We can work through the questions and the next useful step.