The Skipton Building Society has widened the range of mortgage products available exclusively to Lifetime ISA customers.
Three new two-year LISA exclusive products, offering £500 cashback, and three five-year LISA products, offering £1,000 cashback, are being introduced at 85%, 90% and 95% LTV for purchases only. In addition, Skipton already promises £250 cashback on mortgages for its LISA customers.
This move for first time buyers comes just a few days after the government rejected the Treasury Committee’s recommendation that the Lifetime ISA should be abolished, noting that no evidence was taken from any providers of the Lifetime ISA.
The Skipton launched the first Cash Lifetime ISA to UK consumers in June 2017 and over 120,000 accounts have been opened in just over a year.
Kris Brewster (pictured), the Skipton’s head of products, said: “We welcome the government’s commitment to the Lifetime ISA product. There is clear evidence that the Lifetime ISA helps to answer the needs of a new generation of savers, supporting property ownership and preparation for life ahead. Over 120,000 of our members are already using the product to boost their savings, with over nine out of ten looking to buy their first home.
“By widening the choice of loan to value on its LISA exclusive range, the Society is further answering the needs of a new generation of savers by assisting them in getting a foot on the property ladder.”
The Skipton’s new fee free LISA mortgage purchase range includes a two-year fix at 2.30% to 85% LTV, with £500 cashback, and five-year fix at 2.69% to 85% LTV, with £1,000 cashback.
The mutual has created a first time buyer scorecard available on its website which first time buyers can download to use when house hunting.
Skipton’s cash Lifetime ISA can be opened online, earning annual interest at a rate of 1.00%.
Brewster added: “As one of the largest UK building societies, Skipton’s purpose has always been to support people in planning and preparing for their life ahead. By adding further mortgage products exclusively for people with a Lifetime ISA, we are giving homebuyers purchasing for the first time, the opportunity to step onto the housing ladder sooner than they might have expected.”