Skip to main content

Using your Lifetime ISA to buy your first home

After all the waiting and saving, the moment may have finally come to use your Lifetime ISA to buy your first ever home. But what do you do next? How do use the money you’ve saved up to buy your first home? It’s an exciting time, but a confusing one. We’re here to help make it as simple as possible.

Helping people into homes is something that we’ve been doing since 1853, so you can trust us to help you too.

A good place for your mortgage

  • £250 cashback

    Exclusively for Skipton Lifetime ISA customers (terms and conditions apply^).

  • Our range of mortgages

    We have a range of fixed and variable mortgages to help you get on the property ladder.

  • No charge for mortgage valuation

    We won’t charge you for valuing your property for mortgage purposes.

You could lose your home if you don’t keep up your mortgage repayments.

How to use your Lifetime ISA

Man looking at phone in cafe smiling

Step 1 – Find out how much you could borrow

Get started by using our Affordability Calculator for a check based on your income and outgoings. This will give you an idea of how much you could potentially borrow. At the end, you can also request a Decision in Principle (DIP), if you're ready, or you can do this within 30 days of receiving your calculation.

Remember, your new home must be in the UK and it mustn't cost more than £450,000 if you’re planning to use your Lifetime ISA. Plus, you must have made your first payment into the Lifetime ISA at least 12 months before withdrawing funds to avoid the 25% government withdrawal charge.

You cannot be related to the person who's providing your mortgage. A related person is; a spouse or civil partner, or a person with whom you have a relationship that has the characteristics of husband or wife; or your parent, grandparent, child, grandchild or sibling.

Affordability Calculator
Couple looking at houses for sale through window

Step 2 - Arranging a mortgage

You’ve found a home that's right for you and it’s time to make an offer. Many sellers and estate agents may ask you to provide proof of a Decision In Principle (DIP) or Agreement in Principle (AIP), as assurance that you can get a mortgage. Our DIP is a non-binding agreement from us showing how much we may be prepared to lend based on your income and expenditure.

Our mortgage advisers can talk you through our range of mortgages for first time buyers, help you find one that's right for you and take you through the application process. We have a range of fixed and variable rates available.

As a Skipton Lifetime ISA customer, if you choose to take out a mortgage with us to buy your first home, you’ll be eligible for £250 cashback following completion. Terms and conditions apply.^

Find a mortgage

Step 3 – Releasing the money from your Lifetime ISA

Your savings will remain in your account until they’re needed by the conveyancer handling your purchase. So, when the time comes:

  • Pass on a completed Investor Declaration Form [PDF] to your conveyancer
  • They will then complete their Conveyancer Declaration Form [PDF] and send it to us
  • We'll then email you a confirmation form for you to sign and return to us, which will approve the release of your funds to your conveyancer
  • Once we have received all of the above documents we'll release the funds to your conveyancer, which can take up to 30 days
  • Your conveyancer then has 90 days to complete the purchase on your behalf.

If the conveyancer finds they need more than 90 days they can ask for an extension. If the sale doesn’t go ahead, they must return the money to us to put back into your Lifetime ISA. If 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, your Lifetime ISA can be used towards the deposit when you buy your initial share. However, if you make any withdrawals in future to buy further shares, they will be subject to the government withdrawal charge.

If you close your Lifetime ISA while there is a government bonus pending, it will not be paid to you. If you want to ensure any pending government bonus is paid, you must keep at least £1 in your Lifetime ISA until the government bonus has been credited to your account.

The paperwork you will need

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

^£250 cashback mortgage terms and conditions

Subject to our normal affordability assessment and lending criteria at the time, Skipton Lifetime ISA customers who are buying their first home with a Skipton mortgage will be eligible for £250 cashback following completion of their mortgage. This offer is only valid for mortgages completing from 6 April 2018 to 30 June 2027. Cashback will be paid for new mortgages where at least one of the applicants is a Skipton Lifetime ISA customer buying their first home. If the mortgage is in joint names and with another Skipton Lifetime ISA holder, only one cashback amount will be paid. Cashback will only be available once.

You could lose your home if you don't keep up your mortgage repayments. Mortgage valuations aren’t regulated by the Financial Conduct Authority.

Need help?

Call us

If you need more help one of our friendly members of staff would be happy to assist.

0345 608 0786

Version Info: