Newcastle Building Society looks likely to become the latest provider to offer Lifetime ISAs, which can be used to help first-time buyers saving for a deposit on a home.
The building society announced its intention today to offer a cash version of the ISA which it will introduce to the market in the next few weeks.
Lifetime ISAs are one of the Government-backed solutions aimed at helping more people on to the property ladder. Launched in 2017, they allow savers to invest up to £4,000 a year and receive a Government bonus of 25% to top up the savings pot. In line with ISA rules, there is no tax on the interest.
As well as being aimed at first-time buyers, the Lifetime ISA can also be used by people to save for their retirement.
Currently only two other providers offer cash Lifetime ISAs – Skipton Building Society and Nottingham Building Society. However a number of firms offer stocks and shares Lifetime ISAs which invest your saving into the stock market.
Stuart Miller, customer director at Newcastle Building Society, said: “We know how difficult it is for many people to save up enough of a deposit to allow them to own a home.
“Similarly the importance of planning your finances ahead of retirement has never been more important. That is why Newcastle Building Society wants to be able to offer a Lifetime ISA.
“Saving the maximum with a Lifetime ISA could mean people between 18 and 39 could earn as much as £32,000 as a free Government bonus to put towards their first home or their retirement.”
He added: “We hope that Government will continue with Lifetime ISAs and provide consistent and long-term support to those who are saving for a home or planning for future retirement.
Newcastle said it was one of only two building societies who offered the Help to Buy ISA at launch and also provide Help to Buy mortgage products.
