In Q1 at the society 7.1 times more people opened a lifetime ISA than its sister product, the Help to Buy ISA.
Nottingham Building Society expects the lifetime ISA to fill the gap that Help to Buy ISA will leave when it ends on 30 November this year, after seeing far more support for the former product.
In Q1 at the society 7.1 times more people opened a lifetime ISA than its sister product, the Help to Buy ISA.
Jenna McKenzie Day, senior savings manager at The Nottingham, said: “We’re not surprised by the statistics because we know LISA is a genuinely beneficial account that in many cases is helping people buy their first home sooner.
“A large majority of those opening a LISA with The Nottingham are first-time buyers planning to use the funds for their first home. That means potential bonuses of up to £1,000 a year are available for every £4,000 saved.
“The UK is waking up to these benefits and with the government still planning to pull the Help to Buy ISA in November this year, this will only gain momentum.
“Since the start of the year, we have seen over seven times as many lifetime ISAs opened compared to the Help to Buy ISA, so it’s clear that the LISA is primed to fill the gap that Help to Buy ISA will leave when it’s stops in November.
“Although there are more first-time buyers opening the account, it doesn’t mean they won’t turn into retirement savers. That’s why it’s called a lifetime ISA - you can continue saving into it once funds have been used for a house purchase.
“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 building society launched the government-backed savings product in branches last August and the online version in March this year. And first-time buyers that open their LISA with The Nottingham can speak to a Nottingham mortgage service adviser.
