First-time homebuyers in lifetime Isas are left with LESS money than they put ... trends now
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A landmark government savings scheme to help first-time homebuyers boost their deposits is leaving them with less money than they put in.
The Lifetime ISA (LISA) scheme is embroiled in controversy because of a rule that can scupper young people's home purchases.
Consumer campaigner Martin Lewis last night intervened – calling for Ministers to take action over what he called a 'dud' scheme.
The LISA accounts were designed to help under-40s save for their first home. A bonus of 25 per cent from the Government on top of anything saved convinced half a million to take one out.
The Lifetime ISA (LISA) scheme to help first-time homebuyers boost their deposits is leaving them with less money than they put in
But savers – who can put money away into their 40s so long as they open them when aged 18 to 39 – risk being caught out by a rule limiting the cost of properties to £450,000.
When that amount was set at the scheme's launch in April 2017, it was high enough to ensure first-time buyers would easily find eligible homes. Since then, property prices have shot up 35 per cent.
By not increasing the cap it means typical first
