Bees

Homebuyer Lifetime ISA

LET THE GOVERNMENT HELP BOOST YOUR DEPOSIT 

Buy your house in record time* with a 25% Government boosted savings account. Moving into your first home is easier with the Homebuyer Lifetime ISA (LISA) thanks to a generous Government bonus. Plus, we’ll pay you interest on top as a little extra.  

There’s five simple steps to moving into your new home:  

1. Open your Lifetime ISA - plus get £50 if you're transferring to us 
2. Set your deposit goal and start saving  
3. Search for your dream house 
4. Let us help you find the right mortgage 
5. Move in! 

*We’re not promising Olympic speed savings here, you still have to have your account open for 12 months before buying your first home to avoid a 25% Government withdrawal charge. Remember, home-buying is a marathon, not a sprint. 

SET YOUR GOAL

Set your target savings amount and when you want to save it by. Let the key milestones guide you to your target with tasks and reminders. Use your goal tracker to show you how close to your deposit you are.

Download the app and open an account arrow
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What’s a LISA?

LISA (pronounced lie-sa) is short for Lifetime ISA. It’s a tax-free savings account and Government scheme designed to help you save for your big milestone: your first home. 

If you are 18-39 and looking to save for your first home, a Homebuyer Lifetime ISA could be ideal. This tax-free savings account is boosted by a 25% Government bonus, which means as well as earning interest, you could earn up to £1,000 a year in bonuses alone until you turn 50 – although hopefully it won’t take that long for you to save your deposit. 

It works like this. For every £4 you save, the Government will add £1. So each tax year you can put an annual total of £4,000 into your Beehive LISA and you can earn up to £1,000 in bonuses.


Things to know

£50 cashback for switching accounts is available to LISA customers who have saved a minimum of £10,000 for their first house deposit, and who are switching their existing Lifetime ISA account from another provider to Beehive Money. Terms and conditions apply, of course. 

Tax-free savings (also known as Individual Savings Accounts or ISAs) accounts are simple, really: with accounts like these you won’t have to pay tax on the interest you earn. There’s also a cap on how much you can add each tax year, depending on your circumstances, and keep in mind that the tax rules around ISAs could change. 

AER, or Annual Equivalent Rate, is designed to make savings accounts easier to compare. The AER will show you what your interest rate would be if interest was paid back into your account. For accounts that pay interest annually, the gross rate and the AER should be the same. For accounts that pay interest monthly the AER will be slightly higher than the gross rate. This is because if you leave your monthly interest in the account you’d start to earn interest on the interest.
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The highlights

  • home-iconSave for your first house
  • transfer-icon£50 cashback for switching to us (T&Cs apply)
  • government-bonus-icon25% Government bonus
  • advice-iconGet mortgage advice from Mortgage Advice Bureau
  • residents-iconUK residents aged 18-39
  • online-iconOpen in our app with £10 today
  • interest-iconEarn interest tax-free
  • deposit-iconDeposit up to £4,000 per year

Why choose a LISA?

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Earn up to £1,000 a year

You’ll get a free 25% Government bonus for every £4 you save, up to a maximum yearly bonus of £1,000. It’s a great way to supercharge your savings.

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Transfer to another provider any time

While we think you’ll love saving with your Homebuyer Lifetime ISA, you’re not locked in if you change your mind. You can move your LISA to another bank or building society in the future.

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Switch to us and get £50 cashback

If you already have a Lifetime ISA and have saved at least £10,000 towards your deposit, we’ll give you £50 cashback for transferring to Beehive.

Who's eligible?

Anyone aged 18 to 39 saving for their first home. You can’t withdraw money from this account for pretty much any other reason – there are just a couple of exceptions, including terminal illness – and if you do, you’ll have to pay a 25% Government withdrawal charge. So if you’re saving for something else, have a look at our other savings accounts.

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First-time buyers

Looking forward to buying your first home? A LISA can help you save for a deposit that little bit faster. Keep in mind that it can only be used for your first home 12 months after opening your account without facing that 25% Government withdrawal charge, and the house must be:

  • in the UK
  • £450,000 or less
  • purchased with a mortgage
  • your home – not a buy-to-let or anything else. 

There are a few other terms and restrictions to keep in mind, which you can read more about in our key features document.

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Switching from your existing provider

If you’ve been putting money away in a Lifetime ISA already, it’s simple to switch to Beehive Money. There’s no tricky applications or confusing jargon, simply download the app, click on the Homebuyer Lifetime ISA and follow some simple steps in the app. We’ll take over from there. 

Once the transfer is complete you get:

  • £50 for switching over (if you have over £10,000 in your LISA)
  • Our handy savings goal tracker to watch your deposit as it grows
  • Goal setting and milestone tools to help you save for your deposit more effectively with help and guidance along the way
  • Access to a variety of tools to help you know how much deposit you’ll need
  • Mortgage recommendations searched from over 90 lenders and thousands of mortgages.

Important information about the LISA

Now we’ve given you an overview of the LISA and how it works, you might have one or two questions. We’ve answered some of them below.

When will I get my £50 cashback for transferring my LISA across?

Once you Lifetime ISA has transferred across to Beehive Money, we will start processing your cashback. Cashback can take up to 90 days to hit your nominated bank account.

What is the interest rate and is it fixed?

The annual interest rate is variable and there may be times we need to change it. Right now, it’s set at 0.50% tax-free p.a/AER.

Will I have to pay tax on the interest?

No, you won’t. The LISA is a tax-free savings account, so you won’t have to pay tax on the annual interest you earn or the 25% Government bonus. However, if you have other ISAs you’re investing in, make sure you’re aware of your annual ISA limits.

How do I get the bonus payments?

We add the 25% Government bonus to your account automatically once it’s been processed by HMRC, which is usually 4-9 weeks after each deposit. Remember: bonuses are capped at £1,000 a year, and you can only access your savings when you spend your LISA savings on your first home. 

Can I withdraw my money

Technically yes but if you take money out for anything other than your first home purchase, you’ll have to pay a 25% Government withdrawal charge. That means you might get back less than you paid in. There are some exceptions, like if you’re diagnosed with a terminal illness, and you can find out more about those here. By the way, you have to wait until 12 months after you open your LISA to use it to buy your first home; if you’re hoping to buy a house quite soon, you might be better off with a different type of account.

How do I open a LISA with Beehive?

Once you’ve downloaded the Beehive Money app and registered, it’s easy to apply for an account. We’ll ask you for a few details, including your National Insurance number, your bank details and previous addresses, so simply open the app, tap ‘apply’ and make sure you have those to hand. If you’re aged 40 or over, though, you can’t open an account. Sorry about that.

Can I transfer from another Lifetime ISA?

Yes. Full transfers from a single LISA provider are permitted for applications to our Homebuyer Lifetime ISA. We're accepting transfers in to the Homebuyer Lifetime ISA of any balance but you only qualify for the £50 cashback if your balance is over £10,000.

After a year, how much could I save?

Well, that depends! Your total will be the money you’ve put in your account, plus the 25% Government bonus, plus interest. At most you can put away £4,000 and earn a £1,000 bonus, plus interest, every year. Have a go with our Lifetime ISA calculator for an estimate.

When can I buy a home with a Lifetime ISA?

12 months after you open your account; if you withdraw money to buy a house any sooner, you’ll have to pay the 25% Government withdrawal charge.

Will I need to meet any criteria to be eligible?

Yes, just a few. You’ll need to be a UK resident, aged 18-39, and you can have more than one LISA but can only fund one each tax year. You can only use the money to buy your first home. To benefit from the bonus to buy your first home, you need to have opened your Lifetime ISA at least 12 months before you want to buy a house. The house can’t cost more than £450,000, and it has to be your actual home – not a buy-to-let, or anything like that. 

Ready to get started?

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Download and sign up

Install the Beehive Money app and sign up to be added to the waiting list. You can sign up for news and updates here too.

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Select Homebuyer LISA

Once you have access to Beehive account, log in and select the Homebuyer Lifetime ISA. If you're switching provider, select 'transfer in'.

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Set goals, achieve milestones

You’re more likely to achieve your dream if you set goals. Our goal tracker and a helpful milestone will help motivate you to save your deposit. And when you’re ready, we'll be there with mortgage advice too.

Your savings are protected

Your savings will be protected up to a total of £85,000 by the Financial Services Compensation Scheme. There’s more about that here.

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Looking for something different?

Don’t sweat it, we have a range of accounts you can choose from. Check them out below.

Retirement Lifetime ISA

Do you already own your home and want to open a Lifetime ISA to save for your retirement? If you're aged between 18-39 then check out our Retirement Lifetime ISA.

See our Retirement LISA arrow

Easy access

Our easy access account is a flexible account with very few restrictions, which makes it a great choice for those who want to put away money but be able to access it at any time, without charges or penalties, and it’s never, ever ‘locked’ away.

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All savings accounts

Not sure about which account you’re after? Whatever your goals and however you’d like to save, we have a range of accounts for almost everyone at Beehive.

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