Martin Lewis explains how you can turn £1 into £1,000 for your first home

Martin Lewis has explained how putting pocket change into a savings account could turn into £1,000 to put towards buying your first home.

Speaking on his TV show, the money-saving expert revealed how you can get the ball rolling for a home deposit by opening up a Lifetime ISA (LISA) with as little as £1.

The savings account lets you save up to £4,000 every year towards your first home, with the government adding a 25 per cent bonus up to £1,000.

They can be opened by anyone aged between 18 and 39.

Lewis said: “It has to have been open for one year before you get the first-time buyer bonus.

“So my big tip to anyone this maybe worthwhile for is get that £1 in.

“You put £1 in and the clock is ticking and then when you want to use it you can put your money in and get the bonus.”

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One success story was shared on The Martin Lewis Show, with viewer Tom quoted as saying: “I put £1 in, back in 2021/22 when this was mentioned to activate. Started looking in 2022, and completed beginning of 2023.

“Thankfully I could use the LISA and got £1,000 for free. Thank you Martin!”

Account holders can continue adding money into their ISA until the day before their 50th birthday, Lewis says.

His advice warns that those who withdraw the money from a LISA account without using it for retirement or a first home will face a penalty and have to pay 25 per cent of the amount withdrawn.

LISA account holders are free to transfer their funds across to other service providers for better deals and are not locked in with the provider they use to open the ISA, he said.