AD this is a paid post in collaboration with Moneybox.
Let’s talk about home ownership. Despite the odds, so many Londoners still have owning their own home at the top at the top of their list of financial goals. So, are you too thinking about taking the first step to doorstep? If so, Moneybox can help you on your journey to becoming a homeowner with their Lifetime ISA. Let’s find out more about how you can get the helping hand you need.
Building up your deposit
You might feel that you need a larger deposit than ever before to purchase your first home. It may be taking you longer than expected to save up, but that’s not to worry. Saving the deposit for your first home is very much a marathon, not a sprint.
However, there is one particularly effective thing that you can do to help reach your saving goal quicker than expected. You can grow your deposit faster with a Lifetime ISA. A Lifetime ISA means that you can get a 25% government bonus on your savings. A Lifetime ISA allows you to deposit a maximum of £4,000 per tax year, on which you will receive a government bonus of a maximum of £1,000 per tax year. *Lifetime ISA rules apply
Moneybox offers the highest interest rate on a Cash Lifetime ISA, currently on the market. That means that not only do you receive the government bonus, but you also receive added interest on your savings too. It’s a real no-brainer if you’re looking to boost your savings.
However, you might be wondering how much you’ll need to save in the changing climate. If you’re unsure of how much you might need to save for your deposit, head to the Moneybox calculator. The calculator allows you to input your budget for your first home, and helps to calculate how much you need to save.
Preparing to buy your first home
As well as your deposit, there’s a few extra things to think about as you prepare to buy your first home in the next year or two. In preparation to buy your first home, make sure you’ve not only got a saving goal in mind for your deposit, but also for any fees associated with buying your first home. You may also want to save up some extra money for costs such as removals, new furniture, and any decorating costs. However, you can certainly cover these extra costs on a budget!
When you save for your first home with Moneybox, they will support you in your home buying journey through their dedicated app. Once you begin to reach a point of coming close to saving your deposit, Moneybox will offer you handy hints and tips to make your journey easier.
How to get started with Moneybox
If you’d like to get started with Moneybox, head to Moneybox to download their app and get started today. And if you’d like to do some extra reading? Head to the Moneybox blog to read up on extra information about Lifetime ISAs, buying your first home, and making that special first step to doorstep.
*To open a Lifetime ISA for the purposes of buying your first home, you must be under the age of 40, and a first time buyer. You can only pay into a Lifetime ISA up until the age of 50. If you withdraw cash from your Lifetime ISA for any reason other than your first home purchase (up to £450,000) or retirement, you’ll have to pay the 25% government withdrawal charge. That means you could get back less than you paid in.
Remember: if you opt for a Stocks and Shares Lifetime ISA- rather than a Cash Lifetime ISA- that all investing should be long term (min. 5 years). The value of your investments can go up and down, and you may get back less than you invest.