Legal Notice: Product prices and availability are subject to change. Visit corresponding website for more details. Trade marks & images are copyrighted by their respective owners.
The Government website explains the penalty charge on Lifetime ISA withdrawals covers the Government bonus you received on your original savings at the current time due to coronavirus.
The charge is currently 20 percent due to COVID-19, however, it will go back up to 25 percent on April 6, 2021.
Another downside is there are restrictions on using your LISA savings for your first home.
The home cannot cost more than £450,000 and you must not have owned a home before to be able to use your savings for this purpose.
LISA’s also contribute to your total annual ISA allowance, which this year is £20,000.