A Lifetime ISA (Individual Savings Account) allows you to purchase your first home or save for the future. To open a Lifetime ISA, you must be between 18 and 40 years old.

You can contribute up to £4,000 annually until you reach the age of 50, with your initial payment required before turning 40.

The government provides a 25% bonus on your savings, capped at £1,000 per year.

If you’ve been saving for your first home in a Lifetime ISA, you can’t use the bonus for an investment property. Additionally, if you take out your savings from your LISA for anything other than your first residential home or retirement, you’ll also face a small withdrawal fee, reducing the amount you receive.

Find Out More: If you want to read more about buy-to-let investment, see our guide on safe investments with high returns.