Lifetime ISAs - are they working for first-time buyers?
I'm writing a feature on Lifetime ISAs - and seeking comment from the mortgage brokers and lenders as to whether they should be improved, left as they are or ditched altogether.
Key questions it would be good to answer:
- Are LISAs helping first-time buyers on to the housing ladder - is there sufficient awareness of them? Are people using them to save for a deposit, or are these just used for a small minority?
- What would make them more appealing to FTBs - more generous bonus rates, less harsh penalties, extending age at which can open one, for example? Does having this as a ‘lifetime’ product, rather than a savings vehicle solely aimed at house-buyers muddy the water.
- Is there an issue with the maximum house purchase limit - is this potentially making them less relevant for would-be buyers in London and South East?
- Should LISAs just be ditched completely - and if so what should Govt do instead? Replace them with another type of savings vehicle (like Help to Buy) or simply use the money they spend on LISA ‘bonuses’ to build new homes?
- Do brokers like LISAs - or do they just complicate things a bit?
Any other observations on this would be gratefully received. Ideally I'm looking to get comments in by close of play on 20th February.
Many thanks Emma