Money Saving Expert advice which can give first time buyers £1,000 per year – Lancs Live

by MoneySaverExpert

First time buyers can get up to £1,000 each year by opening a particular type of savings account.

Money Saving Expert is urging everyone between the age of 18 and 39 to open a Lifetime ISA (LISA) now, even if they only deposit £1.

Savers will get a 25% bonus from the state on everything they put in before they turn 50.

While you may not be thinking about buying a property yet, it’s well worth taking steps to ensure you get more for your money later on, Echo reports.

READ MORE: State Pension age is rising in the UK again meaning Brits retire later

You can put up to £4,000 in per tax year. The 25% bonus means if you save £1,000 you would end up with £1,250 – while the full £4,000 will turn into £5,000.

There is a limit of £4,000 on what savers can put in their LISA, which can be paid in a lump sum or by putting in cash when you can.

The 25% bonus on this maximum £4,000 saved per year would be £1,000.

The money from the LISA can then be used on your first residential home – costing up to £450,000.

It is important to note the LISA must have been open for at least a year for you to be eligible for any bonuses, with MSE urging all who can to open one now with £1 to get the clock started – just in case.

It’s still doable even if you’re buying with someone who isn’t a first-time buyer.

It’s an individual product, so first-time buyers can still use it, regardless of who they buy with.

Equally, if both are first-time buyers, you can have one each.

If you withdraw the money before you turn 60, however, there’s effectively a 6.25% penalty if you’re not buying a home.

Download the LancsLive app for free on iPhone here and Android here.

To keep updated, follow LancsLive on Facebook and @LiveLancs on Twitter.

Have you got news for us? Contact our newsdesk on

Get all the latest news, sport and what’s on stories sent to your inbox daily with the LancsLive newsletter here.

You may also like

Leave a Comment