He said: “With the Bank of England cutting interest rates to a record low during the height of the pandemic, the amount of interest savers can earn from a standard savings account isn’t going to help very much when it comes to saving for a deposit.
“A much better option is to channel regular savings into a Lifetime ISA (LISA), which offers first-time buyers a generous 25 percent bonus on their savings when they’re ready to buy their first home.
“The caveat is that LISAs are only an option if the saver is under the age of 40, and they are also limited to savings of £4,000 a year.”
While the recent introduction of the 95 percent mortgage, backed by the government is intended to help ‘generation rent’ turn into ‘generation buy’, UK house prices are currently increasing at their fastest rate since 2004.
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