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More than 40,000 savers open cash Lifetime ISA
Skipton Building Society says 42,000 savers have opened its cash Lifetime ISA since it launched in June.
The mutual is the first and only provider to offer a cash version of the Lifetime ISA (LISA) which aims to help people buy their first home and save for retirement at the same time.
The product launched for pre-registered customers on 6 June and officially launched on 8 June. Up until 24 October, Skipton said just over 42,000 people had opened the product.
It found that the majority of savers – 86% – are using the product to save for their first home as they look to take advantage of the government’s 25% bonus. See YourMoney.com’s Lifetime ISA guide for more information.
Skipton also asked 500 LISA customers about their savings plan and 34% of 18-24-year olds expect to save for one to two years before buying their first home. Two fifths (41%) expect to buy within three and five years.
Kris Brewster, head of products at Skipton Building Society, said: “This sends a real signal of intent from our younger members that despite increasing house prices and squeezes on our wallets they are making a determined effort to get the keys to their first home. And we are pleased to offer a product that is helping to encourage future homeowners to save towards this significant milestone.
“Since launching the UK’s first cash Lifetime ISA in June, there continues to be a high level of interest in the product. At Skipton, we believe the LISA could make a real difference to a new generation of savers, not only in helping them get a foot on the property ladder, but providing them with another option to help them save for their future too – and all tax-free.”
The Skipton’s cash Lifetime ISA offers an interest rate of 0.50% and it can be opened online. A 25-year-old maximising the product’s annual allowance for eight years will have an estimated pot of £40,776 by the age of 33, an amount higher than the average first-time buyer deposit, according to Skipton.