The Lifetime ISA (LISA) is one of the best deals available to a UK first-time buyer: the government adds a 25% bonus to what you pay in. Here's how that bonus stacks up over a few years.
The Lifetime ISA (LISA) is designed for buying a first home (or for retirement). Its headline feature is a 25% government bonus on everything you pay in, up to an annual limit — so for every £4 you save, the government adds £1.
If you pay in the annual maximum for four years, here's how your own money and the government bonus build together:
That's £16,000 of your own money turned into £20,000 toward a deposit — a £4,000 boost, before any investment growth.
That £20,000 — including the £4,000 bonus — goes onto your deposit. Here's how using the full LISA compares with putting in only your own £16,000 on a £300,000 home:
| Your £16k only | With the bonus | |
|---|---|---|
| Down payment | £16,000 | £20,000 |
| Mortgage (amount borrowed) | £284,000 | £280,000 |
| Monthly payment | £1,660 | £1,637 |
| Total interest over 25 yrs | £214,071 | £211,056 |
Using the account, your monthly payment is about £23 lower and you pay roughly £3,015 less interest over the life of the loan.
Use the LISA to capture the full bonus, then hold any extra savings in a Cash or Stocks & Shares ISA. When you're ready, see what your deposit buys on the UK mortgage calculator.
This page is general educational information to help you think it through — not financial, tax, or legal advice. Your own situation is unique; consider speaking with a qualified adviser before making a big decision. See how we calculate and our Privacy Policy.