My background

I took out a Help to Buy ISA when they were first launched. When LISAs were announced, I considered opening one in order to save for a house, but in the end decided against it for the reasons listed below.

I am now over 40 so too old for a LISA, even if they were reformed.

1

Is the Lifetime ISA fit for purpose in its current design, including as a combined product for house purchase and pension saving? 

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2

How well do consumers transition between using the Lifetime ISA as a product for house purchase, to then a product for pension saving?   

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3

Given its policy purposes, is the Lifetime ISA value for money for the Government? 

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4

Is the Lifetime ISA a suitable pension savings product? 

Personally, I would never have considered using it as a retirement savings as I would prefer to add to my workplace pension or other investment option.

However other people may like them.

5

Should the Lifetime ISA be abolished? 

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6

Should the Lifetime ISA be reformed to remove the withdrawal penalty? 

Definitely yes.

It currently penalises people who have done everything right, but house prices have risen quickly and now many first time buyers are having to buy properties over £450k.

I think it would be fair for the withdrawal penalty to be equal to the bonuses acquired.

At the moment the penalty is more than the bonuses which is unfair and means people are losing some of their initial savings – they would have been better off using a normal ISA / other savings account.

7

Should the Lifetime ISA be restricted to those with no access to a workplace pension? 

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8

Should the Lifetime ISA house price cap be raised in line with inflation, or removed? 

There should be a cap of some sort, as I think this product should be aimed at helping “normal” first time buyers, not people buying 20-bed mansions.

However it does need to be regularly reviewed as in London and some other parts of the country, it is very hard to buy a property for under £450k.

9

Should the annual Lifetime ISA limit be raised from £4,000? 

Possibly – in line with the raise in the house price cap?

10

Should the Lifetime ISA be reformed in any other way? 

Are there any plans to raise the house price limit for Help to Buy ISAs? I know they are no longer available as a new product, but I’m sure many people still have them and £250k is a low limit in many areas.