Martin Lewis explains how people can get free £1,000 a year to buy first home with just £1
Martin Lewis has detailed a scheme that sees people receive £1,000 a year to help buy their first home.
The MoneySavingExpert founder explained that this help can be found through Lifetime ISA (LISA) saving accounts.
Martin took to TikTok to reveal how you can open a new LISA with just £1 - and recommended doing this even if you’re not ready to buy a home just yet.
In the video, titled 'Why you should stick £1 in a Lifetime ISA NOW!', Martin said: “If you’ve never owned a house, put a quid in a Lifetime ISA. Why? It gets the clock ticking.
"The Lifetime ISA is a savings product you can put up to £4,000 a year in but when you do, the state adds 25% on top.
"If you put £4,000 in, they’ll give you £1,000 towards your first home.
"So why should you put the £1 in? Simple. You have to have it open for a year before you get the bonus.
"If you put the £1 in now, even if you’re not thinking of buying a house yet, then once you are ready to buy you’ll get the bonus instantly."
A LISA allows savers to get a 25 percent bonus from the government on any money they put away towards their first home or retirement, the Mirror reports.
The maximum amount you can put into a LISA is £4,000 each year - meaning a yearly bonus of up to £1,000.
However, there is a catch.
You need to use this money on either your first property or your retirement.
if you don’t, you have to pay a penalty of 25% of the amount being withdrawn.
The other catch is that you must be between the ages of 18 to 39 to open a new LISA, although you can keep saving in an existing account right up until you turn 50.
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