What is a Lifetime ISA?

The Lifetime ISA is a new government savings initiative to encourage savers between the ages of 18 and 39 to save for their first home, or alternatively for their retirement.

You will be able to save up to the Lifetime ISA limit of £4,000 per year, and in addition you will receive an extra 25% government bonus (maximum of £1,000 per year).

How will our Lifetime ISA work for you?

Our Lifetime ISA may be more suited to an investor looking to save for a deposit on their first home. The value of the property can not be more than £450,000, and it must be in the UK.

Our Lifetime ISA will provide a guarantee of you getting back the contributions you have invested, plus the additional Government bonuses of 25% when used towards the purchase of your first home.

It will provide an investment return on contributions received of 1% per annum in addition to the Government bonus.

If you are buying your first home with someone else you can each use a Lifetime ISA, and each benefit from your Government bonuses.

If you are looking to save for your retirement, the 25% Government bonus will be applied to all yearly contributions up until you reach age 50. This could mean that if you save £4,000 per year from age 18 you will pay in £128,000, with an additional £32,000 being given by the Government.

After you turn 60, money you withdraw from our Savings Lifetime ISA is restriction-free and won't incur a Government penalty.

At age 60 you can choose to keep your funds invested with us, and any interest or investment growth will continue to be tax-free. You could also transfer your savings to another type of ISA.

In the event of your death our Lifetime ISA will pay out 101% of the policy value.

The policy can be surrendered (cashed-in) without the proceeds being used to buy a house. However, although you would receive 100% of the policy value, the Government would apply a penalty (currently 25%)

Full details and Terms & Conditions of our Lifetime ISA will be available shortly.

You will be able to contribute to one Lifetime ISA in each tax year, as well as a cash ISA, a Stocks and Shares ISA, and an Innovative Finance ISA, within the overall ISA limit of £20,000 (as at April 2018).

When is it coming, and how can I apply?

We plan to launch our Lifetime ISA in autumn 2018.

Full details on the Key Information and Terms & Conditions of this exciting new investment opportunity will be available shortly.

Should you be interested in receiving more information directly to you, simply email your name and address to us and we will send you an information pack by post. If you would prefer this to be sent via email please let us know.

The details you provide here will be used solely for the purposes of providing you with information on this product. We, Unity Mutual, will not share the data you provide here with any third party.

Any questions?

As always, our customer service team is available to discuss any questions you may have, just give us a call on (0161) 214 4650.

At a glance

  • Tax-free Lifetime Individual Savings Accounts (LISAs), available to anyone between the ages of 18 and 39.
  • To get started you’ll need to invest £250 or set up a direct debit of £25 a month.
  • You can invest up to £4,000 per tax year and receive a 25% bonus on your investment from the government.
  • Interest on our Lifetime ISA will be 1% per year.
  • Your money is invested for the purpose of buying your first new home, or for your retirement.
  • If investing for the purposes of saving for retirement, you should consider how this could affect any workplace pension arrangements.
  • You can access your money when you need it (subject to Terms & Conditions)