MARTIN Lewis has revealed how saving £1 TODAY can help you see £1,000s in free cash – here’s how to apply.
The Money Saving Expert reminded Brits of details surrounding Lifetime ISAs, speaking on his popular podcast.
1
During yesterday’s segment of The Martin Lewis Podcast, he explained how LISAs work, and who is eligible.
The helpful scheme is available to anyone aged 18 to 39, who doesn’t own a home – and Martin urged everyone to put £1 in today.
“Lifetime ISAs are the best currently available savings for anyone who hopes one day to buy their first home because the state will add money to your deposit,” he said.
“They are a tax free savings or investment account openable when aged between 18 and 39.”
Martin also shared his golden “need to knows” about LISA money.
His reminded Brits they can use the cash for retirement savings – although the MSE admits he is not a fan of this approach.
He explained users will get a 25 per cent bonus on everything they put into their LISA.
This can be up to £4,000 per tax year until you’re 50 – meaning if you put in the maximum you could see £5,000 back.
Most read in Money
But, even if you’re only adding £1,000 you will still get £1,250 that can be put towards a deposit.
The consumer champion added you can use the free money on your first residential home but the price is capped at £450,000.
Martin’s key message was urging everyone to put in just £1 today – because the LISA has to have been open for at least a year before the funds can be withdrawn.
“If you’re aged 18 to 39 in UK and you have never bought a house and don’t have a LISA, I suggest you put a pound in today,” he said.
“You have started that clock ticking.”
The MSE went on to explain there is a 6.25 per cent penalty fee if any money is withdrawn from the account for anything other than buying a first home.
This means you will get less money back than you put in.
When account holders turn 50, they are permitted to remove funds without being slapped with the penalty.
Another important thing to keep in mind is that two first time buyers can both use their LISAs at the same time towards a property.
And, if you are a first time buyer purchasing a home with someone who is not – you can still use your LISA.
Plus, if you have a partner who already has a mortgage, and you are joining them in that property on their mortgage – you can use your LISA, but only in some circumstances.
This comes as the MSE revealed a trick that could see you land a whopping £500 in your bank account from energy companies.
In an episode of the Martin Lewis Money Show Live, the saving expert shared the useful hack.
He also shared how you can become debt-free quicker by using 0 per cent balance transfer cards – here’s what you need to know.
Plus, his expert advice on how to slash compulsive spending – and it could save you hundreds.
