Martin Lewis: Money Saving Expert urges Britons to get new LISA with ‘MASSIVE’ bonus
Martin Lewis appeared on This Morning today, where he shared his money saving tips of the week. “Remember, tips can change quickly, even while I’m on the programme. So always double-check the terms and conditions before spending. “Plus, while I hope these deals will save you cash, don’t spend if you can’t afford it, don’t need it, or won’t use it,’ he first warned viewers before proceeding. Martin spoke about LISAs, better known as lifetime ISAs. They were first launched in 2017, and they’re what he refers to as a “no-brainer for anyone saving for their first property”.
Martin Lewis urges savers to try new ‘no-brainer’ LISA with ‘massive’ bonus when money is paid in
Speaking of the new 1.4 percent LISA, he explained: “For every £1 you put in the state adds a massive 25 percent bonus (so 25p per £1) to your mortgage deposit savings, up to £32,000.
“Yet since its launch, only a few providers actually released LISA products – with the top payer from Newcastle BS at 1.1 percent AER.
“Yet now app-based MoneyBox (powered by OakNorth Bank) has launched a new top cash ISA, paying 1.4 per cent AER variable.”
However, he was keen to remind viewers they must first meet the criteria for securing the LISA deal and a Help to Buy ISA could be the best alternative. Viewers were directed to Martin’s Lifetime ISA guide to find the best deal for them.
“Remember though, there’s a set criteria for who qualifies for a LISA and who it is best for – it’s cousin the Help to Buy ISA may be better for some – so do your reading online to check if it’s for you first. If you already have a LISA then you can transfer it across (ask the new provider to do that, don’t withdraw the money,” he said.
He also warned viewers about a new deal, which is giving people a chance to settle pre-1998 student loans.
Some university leavers who started studying between 1990 and 1998 have received letters from Erudio (the company that managers their students loans) offering them the chance to settle their loan by paying off as little as 20 per cent of the amount outstanding.
However, Martin advised viewers to be “wary” if they receive one of these letters.
He said: “It’s important to understand that the loan may be wiped before you fully repay it, and partially settling your debt could affect your ability to get credit in future. If you’ve still got one of these loans it means you haven’t paid it off in at least 20 years, and in most cases means you’re unlikely to pay any of it back, and even more unlikely to pay it off in full. While it may seem tempting to pay a lower figure than the outstanding balance, the loan will eventually wipe.”
He continued: “While most shouldn’t take up the offer, it may work for some. As Erudio has upped the percentage it is offering to wipe (from 50 per cent to around 80 per cent for some), there are now likely to be a decent chunk of people who are temporarily deferring and have a reasonable chance of earning over the £30,737 threshold, for whom Erudio’s offer will save them money.”
Martin told viewers who are interested in accepting the deal to first ask themselves how long they will earn over the threshold before their loan wipes. Then work out how much they’d pay over that period, and do the maths.a
“If you’d likely pay more than the settlement figure, then settle,” he concluded.
The Money Saving Expert previously spoke about the end of bank charges and how customers can reclaim any charges in his last column with Express.co.uk.
To find out more and sign up to Martin Lewis’ weekly newsletter, visit www.moneysavingexpert.com/latesttip
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