How much bonus do you get with a Lifetime ISA?

The government adds 25% to eligible savings, up to a maximum bonus of £1,000 each tax year. If you save £4,000, your total becomes £5,000 before interest or investment growth.

Can you use a Lifetime ISA to buy your first house?

Yes. You can use your LISA savings and government bonus towards your first home if you meet the eligibility criteria. Under the standard rules, the property must cost £450,000 or less, your first payment must have been made at least 12 months before the withdrawal, and you must intend to live in the property.

Can you use a Lifetime ISA to buy a house with someone else?

Yes. You can buy with a partner or another person. If you both have LISAs and meet the eligibility requirements, you can both use your savings and bonuses towards the same property. If the other buyer has owned a property before, you may still qualify to use your own LISA, provided you meet the rules.

Can you use a Lifetime ISA for a house deposit?

Yes. Your LISA savings and bonus can contribute towards the purchase price of your first home. Your conveyancer will coordinate the withdrawal with your provider, so it's important to discuss the timing of the funds and any deposit payments with them.

Is the Lifetime ISA being replaced?

Yes, but not yet. The government announced in the Autumn Budget 2026 that a new First Time Buyer ISA is planned for April 2029. It will replace the LISA for new savers, but people who already hold a LISA will be able to continue using their accounts under the existing rules.

Lifetime ISA (LISA): how does it work, and can you use it to buy your first home?

Q: What is a Lifetime ISA?

A Lifetime ISA is a government-backed savings account that helps people save towards their first home or retirement. You can save up to £4,000 each tax year and receive a 25% government bonus, up to £1,000 a year.

Have a Lifetime ISA (LISA)? Find out how the 25% government bonus works, who qualifies, the price caps and when your conveyancer can claim it.

Last updated 03 Nov 2026

Read time 3 minutes

Key takeaways

A Lifetime ISA (LISA) helps you save for your first home, with the government adding a 25% bonus to your savings.

You can save up to £4,000 a tax year and receive a maximum government bonus of £1,000 a year.

You must be aged 18 to 39 to open a LISA, and your first payment must be made before you turn 40.

The government announced a new First Time Buyer ISA in the Autumn Budget 2026, planned for April 2029. Existing LISA holders can continue to use their accounts under the current rules.

What is a Lifetime ISA?

If you're saving for your first home, a Lifetime ISA (LISA) could help you build your deposit faster.

A Lifetime ISA, or LISA, is a type of individual savings account that gives you a 25% government bonus on the money you save. You can use it to buy your first home or save for your retirement.

The bonus is a particularly useful benefit when you're trying to save for a deposit alongside paying rent, bills and the other costs of everyday life.

For every £4 you save, the government adds another £1. That means if you save £4,000 in one tax year, you'll receive an extra £1,000, giving you £5,000 before any interest or investment growth.

There are two main types of LISA: a cash LISA and a stocks and shares LISA. A cash LISA pays interest on your savings, while a stocks and shares LISA invests your money, meaning its value can go up or down.

If you're planning to buy a home in the near future, it's worth understanding how the account works, when you can access your money and the rules you need to meet before you commit to using one.

How does a Lifetime ISA work?

You can open a LISA if you're aged between 18 and 39. Once your account is open, you can save up to a maximum of £4,000 each tax year and receive a 25% government bonus on your contributions.

If you're using a Lifetime ISA to buy your first home, it can be used along with other Government schemes including Right to Buy, shared ownership and Help to Buy loans.

With a LISA, you will receive the money in time for exchange on your property, meaning you can use it towards the deposit requested by the seller.

There are a few limits to be aware of:

Maximum annual savings: £4,000
Government bonus: 25% of your contributions
Maximum annual government bonus: £1,000
Earliest age to open an account: 18
Latest age to open an account: 39 (before your 40th birthday)
Latest age to receive the government bonus: 49, with contributions ending at 50

Here's how the bonus could add up towards your first home:

Your yearly savings	Government bonus	Total
£1,000	£250	£1,250
£2,000	£500	£2,500
£3,000	£750	£3,750
£4,000	£1,000	£5,000

You don't have to save the full £4,000 every year. You can contribute smaller amounts when you can afford to, and the government bonus will reflect how much you pay in.

Lifetime ISA (LISA): how does it work, and can you use it to buy your first home?

Have a Lifetime ISA (LISA)? Find out how the 25% government bonus works, who qualifies, the price caps and when your conveyancer can claim it.

What is a Lifetime ISA?

How does a Lifetime ISA work?

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