What if we told you there's a way to get up to £1000 for free from the government every year to help you get on the property ladder? Sounds like a wind-up, right? Well, it's not.
First-time buyer confidence has taken a hit in the last year. Why? Well, interest rates, utility bills, rent, and food have all gone up and despite what some might say, saving up for a deposit has gotten harder as a result. Unfortunately, just ditching the takeaway coffees isn’t going to cut it if you're looking to do all you can to buy a home of your own.
If only we'd had the foresight to start saving while we were in primary school ay?
Luckily, Moneybox may have just the thing to help you to buy your first home.
So it's not all doom and gloom for hopeful first time buyers!
How to fast track your deposit with a Lifetime ISA
The Lifetime ISA (LISA) is a savings account that gives you a 25% bonus on top of everything you save for your first home.That means for every £4 you save, you get an extra £1 from the Government. You can put in up to £4,000 per tax year and receive a boost of up to £1000 - absolutely free, every year! Yep - it’s that easy.
Who’d have thought it was so easy to get free money?! By giving your deposit fund a huge boost with the extra cash you can gain by saving with a LISA, you’ll be able to save up your first home deposit far sooner than would have otherwise been possible.
Moneybox’s Cash LISA also comes with a market-leading interest rate of 4.25% AER Variable which helps grow your deposit even more.
But don't just take our word for it. Here's what Luis Lozano, a Moneybox customer, said about his experience:
“I couldn’t have saved my deposit as quickly without the LISA. On top of the bonus and interest, the fact that it’s locked off is an incentive not to touch it - it makes it easier to fight temptation.”
Remember, a 25% government penalty applies if you withdraw money from a Lifetime ISA for any reason other than buying your first home (up to £450k) or for retirement and you may get back less than you paid into your Lifetime ISA.
If you opt for the Stocks & Shares Lifetime ISA, your capital is at risk
Feeling confused about the whole saving process? They've got a tool for that!
Taking your first step onto the property ladder can be pretty daunting and often confusing, but Moneybox has a handy little tool that helps you budget for your deposit. Their Deposit Calculator gives you a clear picture of where your savings are at, how much government bonus you’ll receive, and how much you need to save each month to buy your dream home.
With a clear deposit savings plan in place, you might find your first home is closer than you think!
More than 170,000 first homes have already been purchased with the help of a Lifetime ISA and it’s estimated that more than 800k people are currently saving into a LISA.
According to the most current government data, 553,000 eligible adults have taken advantage of the scheme so far and have contributed to a LISA. However, there are more than 18 million Britons who are eligible to open a LISA (aged 18 to 39). That means (and we’ve done the maths on this!) there’s a whopping £18.5billion of potential free money each year being left on the table that could be put towards first home deposits.
So what are you waiting for? Get that LISA opened and you could be hosting friends in your very own kitchen before you know it.
Download the Moneybox app here
Featured Image Credit: MoneyboxTopics: News
The LADbible Team