How much bonus will I get?

A quarter of what you pay in. Save £200 a month for 3 years and you'll have paid in £7,200, with £1,800 bonus on top: £9,000 before interest.

What's the most bonus I could get?

£1,000 a year. Open one at 18 and pay in the most every year until 50, and that's £32,000.

What happens if the home costs more than the limit?

You can't use it penalty-free on a home over £450,000. Taking the money out would cost the 25% charge. Bear this in mind if you might buy somewhere pricier.

How much does the withdrawal charge cost?

If you paid in £1,000 and got £250 bonus, then took out £1,250, the charge would be £312.50. You'd get £937.50 back: £62.50 less than you put in.

Is the Lifetime ISA being scrapped?

The government plans to replace it with a new first-time buyer ISA from April 2028. If you already have one, you can keep paying in. Check gov.uk for the latest before you open one.

Cash or stocks and shares?

Both get the same bonus. Cash is safer if you're buying in the next few years. Stocks and shares can grow more but can also fall, so they suit a longer wait.

Guide

Saving

Lifetime ISA for first-time buyers

A Lifetime ISA lets you save up to £4,000 a year towards your first home, and the government adds 25% on top: up to £1,000 a year. You need to be 18 to 39 to open one, and the home must cost £450,000 or less.

Checked 2026-10-04 against GOV.UK.

What your bonus could add up to

In your Lifetime ISA after 3 years

£9,000

£7,200 you paid in, plus £1,800 bonus. Before any interest.

The rules

Who can open one: Anyone aged 18 to 39 who lives in the UK. You can keep paying in until you're 50.
How much: Up to £4,000 each tax year (6 April to 5 April), which counts towards your £20,000 ISA allowance. The bonus is 25% of what you pay in, so up to £1,000 a year.
The home: It must be your first home, cost £450,000 or less, be bought with a mortgage, and be where you live. Your solicitor or conveyancer asks for the money, not you.
Timing: The account must have been open at least 12 months before you use it to buy. Open one early, even with a small amount, to start the clock.
Buying together: Two first-time buyers can each use their own Lifetime ISA, and each gets their own bonus.
Taking money out for anything else: There's a 25% charge, which takes back the bonus and some of your own money. The exceptions are a first home, being 60 or over, or being terminally ill with less than 12 months to live.

Common questions

How much bonus will I get?: A quarter of what you pay in. Save £200 a month for 3 years and you'll have paid in £7,200, with £1,800 bonus on top: £9,000 before interest.
What's the most bonus I could get?: £1,000 a year. Open one at 18 and pay in the most every year until 50, and that's £32,000.
What happens if the home costs more than the limit?: You can't use it penalty-free on a home over £450,000. Taking the money out would cost the 25% charge. Bear this in mind if you might buy somewhere pricier.
How much does the withdrawal charge cost?: If you paid in £1,000 and got £250 bonus, then took out £1,250, the charge would be £312.50. You'd get £937.50 back: £62.50 less than you put in.
Is the Lifetime ISA being scrapped?: The government plans to replace it with a new first-time buyer ISA from April 2028. If you already have one, you can keep paying in. Check gov.uk for the latest before you open one.
Cash or stocks and shares?: Both get the same bonus. Cash is safer if you're buying in the next few years. Stocks and shares can grow more but can also fall, so they suit a longer wait.

Saving for a deposit? The guide shows how long it could take, with or without a Lifetime ISA.

A guide, not financial advice. Rules can change, so check GOV.UK before you open one. Where our numbers come from.