My Lisa provider charged a big penalty when I bought a house

1 month ago Vigour Times

I have had a Lifetime Isa (Lisa) for the last 5 years, in which I am saving for a deposit on a home. However, I am hugely disappointed that, as well as taking away the bonus, my Lisa provider is also taking more than £750 of my own money as a penalty. A 25 per cent penalty on £15,000 equates to £3,750, which means they lose £750 more than the £3,000 added by the 25 per cent Government top up. Once people turn 50, they will not be able to pay into it or earn the 25 per cent bonus. Mistake: Lisa savers shouldn’t simply withdraw their money to pay a house deposit, as this will mean they are charged a penalty.
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