Martin Lewis: Chancellor needs to fix dead duck Lifetime ISAs to stop first-time buyers being fined

MSE_Petar

Martin is today strengthening his call for the Chancellor to overhaul the Lifetime ISA (LISA) in his 22 November Autumn Statement. Young savers should not be essentially fined – and lose their hard-saved cash – when they purchase homes above the scheme's £450,000 limit. This is a problem that leaves far more at risk now than when LISAs launched in 2017.

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'Martin Lewis: Chancellor needs to fix dead duck Lifetime ISAs to stop first-time buyers being fined to access their own money'

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Mopsyrock

Regarding LISA’s, consumers should also be aware that the £450,000 limit applies to shared ownership in exactly the same manner as if you are buying the freehold of the property. My son & his partner purchased 60% of their house in March 2022, therefore are paying a mortgage and rent on the other 40%, but because the house for sale at £500k (Greater London), he lost his LISA interest benefits and had to pay the 25% penalty for the withdrawal. The only way they could continue with the purchase was for me to pay several thousand pounds for the losses incurred on this crazy situation. 🤬🤬