We want to hear about your Lifetime ISA (LISA) experiences

jackalmf

Turn 40 towards end of June.

NurseMoneySaver1122

STARTED saving in a LISA approx, 6+ years ago, and STOPPED paying into it about 2 years ago!

I am one of the many people caught in the LISA property value "trap", as I leave near London. So did not foresee house prices rocketing the way they have, and the government simultaneously refusing to increase the property purchase limit above £450K.

We are unlikely to be able to buy a family home under this price, and so will be losing my interest AND a chunk of my hard earned/saved money!

I understand Martin Lewis is fighting for the government to allow people to withdraw for higher property purchases without losing their own money, and only losing the interest. And that of course would be a great start. But am I the only one feeling hard done by for even losing the interest?!?

Interest rates in LISA's are generally below other savings interest rates, and so the ONLY benefit of putting your money there was the bonus. The interest my money COULD HAVE earned elsewhere, just makes me want to cry!

Without regular updated reviews of the LISA, it is not fit for purpose. And hard working savers should not be held financially responsible for that!

eskbanker

Without regular updated reviews of the LISA, it is not fit for purpose

As mentioned on the previous page, the government plans to introduce a new scheme for first time buyers, which would effectively replace the LISA for them, so a review is planned, although it all seems to have gone quiet since it was announced in the autumn 2025 budget that consultation would happen in early 2026…

Ch1ll1Phlakes

https://forums.moneysavingexpert.com/discussion/comment/81993534#Comment_81993534

@NurseMoneySaver1122 In regards to interest, you can still transfer any existing LISA into one paying a higher interest rate. Mightn't help you in the long term but at least in the meantime the funds in your LISA could be earning around 4% interest tax-free.