Should I withdraw my savings from my Lifetime Isa due to house price rises?
I have had a Lifetime Isa (Lisa) since they launched in 2017, as I am saving for my first home.
During the first five years I maxed out my contributions, saving 4,000 per year, and with the Government bonus and interest on top I now have over 25,000 in the account.
There is a 450,000 limit on the value of a property that can be purchased with savings from a Lisa. This was perfectly adequate in the East Midlands where I lived until last year.
But in 2022, I moved to London. I stopped adding money to the Lifetime Isa, as I think I would struggle to buy a suitable home in London for less than 450,000.
Is there likely to be any movement from the Government on the maximum property value?
If not, me and many others are going to have to withdraw our money - and pay significant penalties - in order to purchase our first property.
Is it worth moving my money out of a Lifetime Isa now while savings interest rates are higher to try and build back some of the penalty that will be lost, or should I keep it in the Lisa in the hope that the Government does the right thing?