On 8 June the Skipton Building Society will launch the UK’s first Cash Lifetime ISA product.
It can be opened online with as little as £1, earning annual interest at a rate of 0.50%.
First-time buyers who decide to take out a mortgage with Skipton (direct or via intermediaries) will also receive £250 cashback in addition to Skipton’s existing mortgage offers.
The extra government bonus from the Lifetime ISA will help first time buyers to buy a home. For example, a 25 year old maximising the product’s annual allowance for eight years will have an estimated pot of £40,776.53 by the age of 33, an amount higher than the average first-time buyer deposit.
Kris Brewster (pictured), head of products at Skipton Building Society, said: “As a mutual, we’ve been helping first time buyers and savers for over 160 years. The Lifetime Cash ISA could make a real difference to a new generation of savers by assisting them in getting a foot on the property ladder. That is why we’re excited to offer a product that will encourage future homeowners to save towards this significant milestone.
“There isn’t a one size fits all approach to saving so it’s important people pause to think about their future and have a range of long-term options in mind – as well as reviewing these plans on a regular basis.
“As a building Society, our purpose has always been to support people in planning and preparing for their life ahead. And being the first in the UK to give savers more choice with the Cash Lifetime ISA, this is another way of us continuing that commitment.”
Savers can split their £20,000 ISA allowance across a range of different Skipton products and make the Lifetime ISA a part of their wider savings portfolio.