The Martin Lewis Podcast Free £1,000 a year for wannabe first time buyers | Will cash ISAs be cut | LISA v Pension
Jul 3, 2025
Discover the ins and outs of Lifetime ISAs and how they can be game-changers for first-time buyers. Martin dives into a recent energy bill drop and what it means for your wallet. He also discusses potential cuts to cash ISA limits and the public's reaction. Get the lowdown on consumer rights under Section 75 and the quirks of festival life with some amusing anecdotes. Plus, learn about a new top savings account that’s stirring things up and why early planning is vital for navigating the housing market!
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Open a Lifetime ISA Early
- Everyone aged 18 to 39 who has never bought a house should open a Lifetime ISA and put at least £1 in immediately.
- This starts the one-year clock to use the government bonus for a first-time home purchase without penalty.
LISA Withdrawal Penalty Explained
- Lifetime ISA withdrawal penalty is 25%, which means if you withdraw early you lose more than just the bonus.
- Buying a first home over £450,000 results in losing the bonus and paying a penalty, which can harm your deposit.
Start LISA Clock With £1
- To benefit from the £1,000 government bonus, the Lifetime ISA must be open for at least one year before withdrawing for a house.
- You can put just £1 in now to start the clock, then add £4,000 later when ready to save seriously.