I am using the Lifetime ISA and was wondering if it's possible to use the money to buy a first home without getting a mortgage at all. For example, if I have enough money in the LISA, perhaps together with money I have saved elsewhere, can I buy a house without ever getting a mortgage? Does the answer depend on the property?

Similarly does bullet point 4 here actually mean I must use a traditional repayment mortgage, or does it mean if I need a mortgage then it needs to be a traditional repayment mortgage?

Either way, a more official statement around the details of this area of the LISA would be really welcome.

1 Answer 1


The Money Saving Expert page on LISAs confirms that you must take out a mortgage:

If you're lucky enough to be buying your first property with cash, you'll pay the withdrawal charge to access your LISA savings (unless you're over 60) as you need to be buying with a mortgage to use the LISA and bonus.

It also clarifies that the LISA terms do not stipulate a minimum amount of mortgage, but mortgage providers generally do.

The gov.uk site also states this more clearly than the page you found:

You can use your savings to help you buy your first home if all the following apply: [...] you're buying with a mortgage

The logic is presumably that if you can afford to pay cash for all except the LISA bonus, you are probably able to raise a mortgage for the shortfall rather than needing the government assistance.

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