Nottingham Building Society has cemented its position as a leading Cash Lifetime ISA (LISA) provider as it becomes the only society to offer the savings account both in branch and online.
Last August, the society launched the government-backed savings product in branches, while the online version was launched in March this year.
For first-time buyers opening their LISA with The Nottingham, when they come to buy their first home, they can speak to a Nottingham Mortgage Services adviser who can compare thousands of mortgages from across the market and find the right deal, at no extra cost.
Since the launch of the LISA, The Nottingham has seen 670% more people opening a LISA compared to the Help to Buy ISA.
According to Tina Hayton-Banks, director of member services at The Nottingham, 80% of those opening a LISA with the society are first-time buyers planning to use the funds for their first home.
“When you consider bonuses of up to £1,000 a year are available for every £4,000 saved, it’s a genuinely beneficial account that can help people buy their first home sooner or have more deposit to put down and possibly reducing their loan-to-value,” she continued.
“To offer whole of market mortgage advice without a fee in addition to this is another demonstration of how The Nottingham is supporting first-time buyers.”
She added that while think tanks, financial institutions and MPs are calling for the Lifetime ISA to be scrapped, hundreds of thousands of savers are actually benefitting; 17% of The Nottingham members opting for a Lifetime ISA over a Help-to-Buy ISA.
“Although there are more first-time buyers opening the account, it doesn’t mean they won’t turn into retirement savers,” she went on.
“Switching to a long-term savings goal means people can continue to benefit from the government bonus payments and work towards boosting their retirement pot with the same account.”
The government has confirmed it will go ahead with plans to stop accepting new applications for the Help-to-Buy ISA from 30 November this year.
Account holders of the Lifetime ISA are able to save up to £4,000 tax-free every year, with a 25% state bonus being paid annually until the account holder turns 50. The Nottingham will pay 1% annual equivalent rate (AER) interest on the savings balance every year.