Martin Lewis issues warning over ‘unfair’ rule for house buyers
06.11.2023 - 11:15
/ manchestereveningnews.co.uk
Martin Lewis has called for an overhaul of “unfair” aspects of Lifetime Isas ahead of Jemery Hunt’s Autumn Statement later this month. Lifetime Isas are often used by first-time buyers to get on the property ladder, says the Money Saving Expert founder, known for his roles on ITV and BBC.
Returning to ITV with the Martin Lewis Money Show last Tuesday, Mr Lewis argued that young savers should not be essentially fined, and lose their hard-saved cash, when they buy homes above the scheme's £450,000 limit. He warned that more people could potentially be at risk than when Lifetime Isas, also known as Lisas, first became available in 2017.
MoneySavingExpert.com said the Government should allow savers using Lisa money to buy a home that is over the limit to withdraw it without penalty immediately, Birmingham Live reports. Mr Lewis said: "There are rumours the Chancellor is looking to introduce new incentives to help first-time buyers.
READ MORE: He picked them up in Piccadilly Gardens after they skipped school - and left them scarred for life
READ MORE: They've been buzzing around our roads for over a month - but is the Bee Network everything we were promised?
"Yet the first port of call should be to fix the unfair scheme that's currently in play. So I have formally contacted the Chancellor to urge him to make the system fairer. Many who have opened Lifetime with government encouragement now have not only a dead duck product, where they won't get the promised 25 per cent boost, but one with a poisoned beak, because they're fined to get their money out.
"The simple solution, which could be put into immediate effect, is for a Lisa holder purchasing a first-time property for more than the maximum house price, not to be fined.