More than 40,000 savers open cash Lifetime ISA
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.