First-time buyers pass up £9.4bn in free Lifetime ISA cash – research by wealth building platform Moneybox

WOULD-BE FIRST-TIME BUYERS PASS UP £9.4BN IN FREE CASH TO PUT TOWARDS A HOUSE DEPOSIT

* The Government is paying Lifetime ISA customers bonuses of up to
£1,000 for the first time

* But an estimated 98.4% of potential first-time buyers have
failed to open an account

London, 4th May 2018 –
Potential first-time buyers passed up
an estimated £9.4bn of government cash today
after fewer than 2% of eligible savers opened Lifetime ISAs (LISAs), according
to research by wealth building platform Moneybox.

Government bonuses of up to £1,000 on LISAs are being paid for the
first time after the accounts reached their first birthday.

Savers aged 18 to 39 can invest up to £4,000 a year in LISAs,
which attract an annual government top-up of 25% that can be put towards a
deposit for a first home.

However, Moneybox analysis suggests only around 150,000 LISAs¹ have been
opened in the first year despite potential first-time buyers in the UK
numbering in excess of 9.5 million².

That would equate to £9.4bn of free money left in Treasury coffers
that could have been claimed and put towards a first home purchase.

This indicates take-up rates are still drastically low, and that
becomes even more apparent when you consider how many first-time buyers step
onto the property ladder each year.

The number of first-time buyers taking out mortgages in the year
to February 2018 was 390,300³.

Ben Stanway, co-founder, Moneybox, commented:

“First-time buyers are missing out on billions of pounds that
could be going towards the dream of home ownership.

“Many will be saving the £4,000 needed to claim the maximum bonus
elsewhere, so opening a Lifetime ISA makes perfect financial sense.

“It’s been fantastic to see our Lifetime ISA customers receive
their first bonuses and we look forward to helping thousands of people get
their foot on the property ladder over the coming years.”