Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Martin Lewis explains how you can turn £1 into £1,000 for your first home

Martin Lewis shares how how gettng on the property ladder might not be as expected

Lydia Patrick
Wednesday 10 January 2024 11:48 GMT
Comments
Martin Lewis warns 'clock is ticking' on extra £1K for buying first home

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Martin Lewis has explained how putting pocket change into a savings account could turn into £1,000 to put towards buying your first home.

Speaking on his TV show, the money-saving expert revealed how you can get the ball rolling for a home deposit by opening up a Lifetime ISA (LISA) with as little as £1.

The savings account lets you save up to £4,000 every year towards your first home, with the government adding a 25 per cent bonus up to £1,000.

They can be opened by anyone aged between 18 and 39.

Lewis said: "It has to have been open for one year before you get the first-time buyer bonus.

"So my big tip to anyone this maybe worthwhile for is get that £1 in.

"You put £1 in and the clock is ticking and then when you want to use it you can put your money in and get the bonus."

Martin Lewis explains 'side hustle tax' after social media confusion
Martin Lewis explains 'side hustle tax' after social media confusion (The Martin Lewis Money Show Live, ITV)

One success story was shared on The Martin Lewis Show, with viewer Tom quoted as saying: "I put £1 in, back in 2021/22 when this was mentioned to activate. Started looking in 2022, and completed beginning of 2023.

“Thankfully I could use the LISA and got £1,000 for free. Thank you Martin!”

Account holders can continue adding money into their ISA until the day before their 50th birthday, Lewis says.

His advice warns that those who withdraw the money from a LISA account without using it for retirement or a first home will face a penalty and have to pay 25 per cent of the amount withdrawn.

LISA account holders are free to transfer their funds across to other service providers for better deals and are not locked in with the provider they use to open the ISA, he said.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in