Newcastle Building Society to launch cash Lifetime Isa

Newcastle Building Society is to launch a cash Lifetime Isa in the coming weeks.

The move will make Newcastle just the third lender to offer the product alongside Skipton building society, the first to sign up to the scheme, and the Nottingham who launched the product in August.

In April 2017, the government introduced the scheme for those aged under 40, allowing participants to contribute up to £4,000 a year.

The government tops up savings by £1 for every £4 saved, up to the age of 50, and funds can be used to buy a first home, valued at up to £450,000, any time from a year after opening the account.

The savings can also be used to fund retirement.

Newcastle Building Society customer director Stuart Miller says: “We know how difficult it is for many people to save up enough of a deposit to allow them to own their own home.  Similarly, the importance of planning your finances ahead of retirement has never been more important. That is why Newcastle Building Society wants to be able to offer a Lifetime Isa.

“Saving the maximum with a Lifetime Isa could mean people between 18 and 39 could earn as much as £32,000 as a free Government bonus to put towards their first home or their retirement.”

In July, the Treasury Select Committee said it was considering abolishing the Lifetime Isa, which it said had not proved popular with the industry or pension savers.

However, Miller says: “We hope that the government will continue with Lifetime Isas and provide consistent and long-term support to those who are saving for a home or planning for future retirement.”

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