Personal finance guru raised the alarm over a kind of ISA saying that people are effectively unfairly penalised
Money-saving maven Martin Lewis has starkly advised current and prospective homeowners, warning them of potential steep fines. During his chat on BBC Radio 5 Live, he shone a light on the overlooked shortcomings of ISAs and LISAs, flagging that these financial tools lag due to being rooted in bygone conditions.
Speaking candidly, Martin set out the specifics: "You can take the money out only for one of two reasons: number one, you are buying a first time property, you've never bought a property before, you've never owned a property before and that property has to be worth under £450,000. The second reason is you've hit age 60 and then you can take the money out and you get to keep the bonus.
Martin broke down the numbers to show that saving £10,000 could typically earn a £2,500 bonus, bringing the total to £12,500. But withdrawing the funds for reasons not permitted incurs a 25% penalty, thus reducing the amount to £9,375 and resulting in a £625 loss from the original savings, as reported by the Manchester Evening News.
One individual highlighted concerns particular to London's property market: "I live in London and only apartments are affordable at the £450K cap. A decent apartment hovers around £450K. My concern is that when interest rates decrease , buying an apartment in London will be infeasible."
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Nationwide to pay out £450 to customers who choose one particular accountNationwide is offering a 4.5% interest rate for customers who put their money in a one-year Fixed Rate Cash ISA - and it will pay out a hefty sum to those who choose it
Read more »
Nationwide to pay £450 into bank accounts of millions of customersNationwide has told savers it will pay out hundreds of pounds
Read more »
Millions of UK households to get £450 state pension increaseBoth the basic and the new state pensions could rise as soon as next April – by almost £500 a year
Read more »
Martin Lewis criticises John Lewis price promiseThe return of the Never Knowingly Undersold scheme is the first major move by the retailer’s newly appointed executive director Peter Ruis
Read more »
Martin Lewis gives Direct Debit tip which could give you £1k boostThe Money Saving Expert team shared the trick, hack and tip in its weekly newsletter. The tip, from team member Steve Nowottny, will be a great way to end the week for millions
Read more »
Martin Lewis issues warning for those trying to buy a house over £450kMartin Lewis has warned UK households who want to buy homes worth up to £450,000, as he issued an urgent warning to his Twitter/X users and followers as the Cost of Living crisis continues nationwide
Read more »