Lifetime Isa guide: How they work and how to save and invest

Lifetime Isas allow under-40s to save for a home and retirement at the same time and the Government offers 25 per cent top-ups on contributions, worth up to £32,000 if you max out your fund. Buying a home with a Lifetime Isa You can use your Lifetime Isa savings and bonus to help you buy your first home if all the following apply: The property costs £450,000 or less you buy the property at least 12 months after you make your first payment into the Lifetime ISA You use a conveyancer or solicitor to act for you in the purchase - the ISA provider will pay the funds directly to them You’re buying with a mortgage * You can keep your money in cash, or put it into stocks or investment funds, as with other Isas. The Lifetime isa has four investment options, ranging from the standard fixed allocation portfolios, with a 0.70 per cent annual charge, to Smart Alpha, Fully Managed and Socially Responsible options. The main benefits of the Lifetime Isa are the free Government 25 per cent bonuses on up to £4,000 per year paid in, and the flexibility of being able to save for a first home and retirement at once.