Buy your first home sooner with the lifetime ISA first-time buyers bonus.
- Invest in a stocks and shares Lifetime ISA*, provided by award-winning financial services provider OneFamily
- Claim a bonus of up to £1,000 each tax year
- Pay zero tax when you take money out, no matter how much your investment has grown**
How is a Lifetime ISA different to other ISAs?
A Lifetime ISA is an investment account designed specifically to help people save for their first home or for life after 60.
It’s different from other ISAs because the government tops up your account by 25% of everything you pay in. As you can invest up to £4,000 each tax year, that means there’s £1,000 a year of free money up for grabs! Just be aware that if you take money out within 12 months of when you first start paying money in, or use it to buy anything other than your first home, you’ll be charged a withdrawal fee which will be higher than the bonus you received on that money. This charge doesn’t apply after you turn 60.
Key Facts
| How does a OneFamily Lifetime ISA make money? | The UK government tops up your Lifetime ISA by 25% of everything you invest each month. We also invest your money in stocks and shares to increase the chances of beating inflation*. |
| How much can you invest in a OneFamily Lifetime ISA? | Up to £4,000 each tax year (tax year runs 6 April - 5 April). This comes out of your overall ISA limit – you can pay up to £20,000 into ISAs in your name each tax year. |
| Who is a OneFamily Lifetime ISA for? | There are two groups of people who a Lifetime ISA is designed for:
People who have not owned a property before and intend to use it to save for a home worth no more than £450,000 that they will live in. People who intend to leave the money invested until they turn 60. |
| Who can open a OneFamily Lifetime ISA? | UK residents aged between 18 and 39 (inclusive). |
| What are the risks with a OneFamily Lifetime ISA? | As we invest in stocks and shares on your behalf, the value of your investment is likely to go up and down over time. Therefore, there is a risk that you could get back less money than you’ve paid in. If you withdraw money before you turn 60 for anything other than your first home, you will be charged a government withdrawal fee. |
| How much do you charge for managing a OneFamily Lifetime ISA? | An Annual Management Charge of 1.1% of the account value. |
| Will I need to pay tax when I withdraw the money? | No. Like all ISAs, Lifetime ISAs are tax exempt** meaning there’s no tax to pay when you withdraw your money. |
*Stocks and shares investing has higher potential to grow than accounts that grow with interest rates but returns aren’t guaranteed. The value of stocks and shares can fall as well as rise and you could get back less than you’ve paid in.
** The tax advantages of Lifetime ISAs depend on your individual circumstances and the tax treatment of Lifetime ISAs may change in the future.
Am I Eligible For A OneFamily Lifetime ISA?
- I’m aged between 18 and 39 (inclusive)
- I’m a UK resident or a Crown employee serving overseas and paid out of public revenue (or the spouse of such an employee)
- I’m not a US citizen (or dual US/UK citizen)
- I intend to use the money to buy my first home or to leave it invested until I turn 60
- I intend to keep my money invested for at least 12 months (ideally five years or more)
- I haven’t paid money into a Lifetime ISA already this tax year
How To Apply
You can open a OneFamily Lifetime ISA by setting up a £25 monthly direct debit or by paying in a £250 lump sum.
Before you apply, it’s important that you read the below documents so you can be sure that a OneFamily Lifetime ISA is the right product for you. You can choose to invest your OneFamily Lifetime ISA in one of our two funds:
- Global Equity - Key Information Document
- Global Mixed - Key Information Document
- The OneFamily Lifetime ISA Terms and Conditions
- The OneFamily Lifetime ISA Key Features
Happy to go ahead? Click the button below for our 10-minute online application:
Important Information
How It Works
Our Lifetime ISA is designed to help you save for your first home or for life after 60. It shouldn’t be used to save for anything else as there is a withdrawal charge for any money taken out before you turn 60 that isn’t used to buy your first home.
You’ll receive a bonus from the UK government of 25% of everything you pay into your Lifetime ISA.
You can keep paying money into your Lifetime ISA until you turn 50.
When you make an offer on your first home, you’ll need to instruct your conveyancing solicitor to withdraw some or all of the money from your Lifetime ISA on your behalf to go towards your deposit. Your Lifetime ISA will stay open until you close it, so you can keep saving for life after 60 after buying your first home and keep receiving the government bonus.
After you turn 60, you can withdraw money from your Lifetime ISA freely.
The money paid into your Lifetime ISA is invested in stocks and shares which gives it higher potential to grow than accounts that grow by building interest. However, returns are not guaranteed and as the value can go up and down, there is a risk that you could get back less than you’ve paid in.
Management Fees
There’s an Annual Management Charge of 1.1%. For further information on charges, see the Global Equity - Key Information Document and the Global Mixed – Key Information Document.
Frequently Asked Questions
What are the conditions for buying a home with a Lifetime ISA?
- You must have had your Lifetime ISA open, with money in it, for at least 12 months before buying a home.
- The property you buy must be the first you’ve ever owned.
- The property must cost you no more than £450,000.
- You must intend to live in the property.
- You must buy with a mortgage.
- You can buy with another person, even if they’re not a first-time buyer. If they are a first-time buyer, they can also use their own Lifetime ISA.
What are the conditions for using a Lifetime ISA to save for life after 60?
After your 60th birthday, there are no conditions on how your Lifetime ISA money can be used. Simply withdraw your money whenever you like through your online account.
You can’t pay any money into your Lifetime ISA after you turn 50.
Can I transfer a help to buy ISA to a Lifetime ISA?
Yes. But keep in mind that you can only transfer up to £4,000 each tax year and you won’t be able to use the money to buy your home for 12 months from when you open your Lifetime ISA.
Some people choose to transfer because the bonus that came with the help to buy ISA can’t be used towards a mortgage deposit– it is paid to you only after complete on the purchase, whereas the Lifetime ISA bonus is paid monthly.
You can’t claim a government bonus on both.
What is the government withdrawal charge?
If you take money out of your Lifetime ISA before you turn 60 for anything other than buying your first home, the government will take 25% of everything you withdraw.
You will also be charged this fee if you take money out within 12 months of your first payment into the account or if the property you buy costs more than £450,000.
This charge is more than the bonus you’ll have been paid on the money.
For this reason, a OneFamily Lifetime ISA isn’t the right product for you if you don’t intend to use the money for your first home or to keep it invested until you turn 60.
How much can be invested?
You can invest up to £4,000 into a Lifetime ISA each tax year. Tax year runs from 6 April to 5 April, so the limit resets at midnight on 5 April each year. This limit is set by HMRC and could change in the future.
You can put up to £20,000 into ISAs each tax year in total. Anything you pay into a Lifetime ISA also counts towards this limit.
How is the OneFamily Lifetime ISA invested?
Your money is invested in a fund which is used to buy shares in the stock market. The value of your Lifetime ISA changes depending on the value of those shares.
You can choose between two funds when you open your Lifetime ISA:
-Our global mixed investment fund is designed for shorter term investments such as saving for your first home (five years or more). Read the key information document here.
-Our global equity investment fund is designed for longer term investments such as saving for life after 60 (10 years or more). Read the key information document here.
The two funds also have slightly different risk profiles.
You can switch between the two funds at any time, free of charge, by logging into your online account.
Please bear in mind that the value of stocks and shares can fall as well as rise and you could get back less than you’ve paid in.
OneFamily’s Lifetime ISA is designed for people looking for a long-term investment. You should only consider this account if you are comfortable with the risks involved with stock market based investments and you expect the money to remain invested for at least five years.
Please note that neither WHSmith nor OneFamily provide advice on this product. If you have any doubts about the suitability of this product, you should seek independent financial advice.
How can I see how the fund is performing?
Lifetime ISA statements are sent quarterly. You can view these statements by logging into your online account.
How do I make a complaint?
If you have a complaint, we want to know. In the first instance you should contact OneFamily’s Customer Service team on 0344 8 920 920* or write to us at:
OneFamily Lifetime ISA
OneFamily
16-17 West Street
Brighton
BN1 2RL
*Our phone lines are open from 9am – 7pm Monday – Friday, and 9am – 1pm on Saturdays.
We will aim to provide you with a full response within four weeks of the date we receive your complaint and our response will be our final decision based on the evidence presented. If for any reason there is a delay in completing our investigations, we will explain why and tell you when we hope to reach a decision.
If you are dissatisfied with our response or don’t receive a final answer within eight weeks of us receiving your complaint, you may have the right to refer your complaint to an independent authority for consideration. That authority is the Financial Ombudsman Service (FOS) at:
Financial Ombudsman Service
Exchange Tower
Harbour Exchange Square
London
E14 9SR
Telephone: 0800 0234 567 or 0300 1239 123
Email: complaint.info@financial-ombudsman.org.uk
Website: www.financial-ombudsman.org.uk
Please note that if you wish to refer this matter to the FOS you must do so within six months of our final decision. You must have completed the above procedure before the FOS will consider your case.
Small Print
Information correct as at 31st July 2023.
OneFamily is a trading name of Family Assurance Friendly Society Limited (incorporated under the Friendly Societies Act 1992, Reg. No. 939F), of which Family Equity Plan Limited (Co. No. 2208249) is a subsidiary. Financial Services Register numbers 110067 and 122351 respectively. Registered in England and Wales at 16-17 West Street, Brighton, BN1 2RL, United Kingdom. Family Assurance Friendly Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Family Equity Plan Limited is authorised and regulated by the Financial Conduct Authority.
The above details can be checked on the Financial Services Register by visiting the Financial Conduct Authority.