Chancellor John Healey has pledged to end the Lifetime ISA penalty for those buying homes costing more than £450,000, announcing the measure in his first Autumn Budget.
New First Time Buyer ISA to replace Lifetime ISA
He said: “I’m announcing that a new First Time Buyer ISA will replace the Lifetime ISA, and from today, I am dealing with the LISA penalty. So if the home you want costs more than the limit, you will get back at least what you put in.”
£4.7 billion equity loan scheme for first-time buyers
“And I’m going further: from next Spring, a new scheme for first-time buyers who don’t have the bank of mum and dad behind them.”
“Your First Home – an equity loan scheme, which I’m funding today with £4.7 billion of government-backed lending.”
The announcement forms part of the Chancellor’s first Autumn Budget, delivered on Wednesday.
