Latest money news: Martin Lewis’s warning over little-known fines that could hit millions --[Reported by Umva mag]

Welcome to Metro.co.uk’s money blog — today we’re talking about fines, hidden fees, and what you can do to avoid them.

Martin Lewis was doing the rounds this week warning about the potential pitfalls of Lifetime ISA accounts, something every homeowner or aspiring buyer should know about.

These accounts were introduced in 2017, with the aim of helping people aged 18 to 39 get on the property ladder by offering to boost their savings by 25%.

But the Money Saving Expert appeared on BBC Radio 5 Live, revealing: ‘The problem with a lifetime ISA – the big one is if you take your money out for any other reason than to buy a first time qualifying property or at retirement effectively when you’re age 60, you take a 25% penalty.’

He explained that someone saving £10,000 would end up with £12,500 with the government top-up.

But if you were to incur a 25% penalty for withdrawing the money you would be left with £9,375 – £635 less than what you put away to begin with.

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