The Money Saving Expert explained the potential pitfall behind Lifetime ISAs (Picture: Ken McKay/ITV/Shutterstock)

Welcome to Metro.co.uk’s money blog — today we’re talking about fines, hidden fees, and what you can do to avoid them.

Martin Lewis was doing the rounds this week warning about the potential pitfalls of Lifetime ISA accounts, something every homeowner or aspiring first-time buyer should know about.

These accounts were introduced in 2017, with the aim of helping people aged 18 to 39 get on the property ladder by offering to boost their savings by 25%. But the Money Saving Expert revealed on BBC Radio 5 Live that if you withdraw your money for any other reason other than to buy your first home, or at retirement, you incur a 25% penalty.

That means someone who saved £10,000 would get £12,500 with the government top-up. But would ultimately be left with £9,375 – £635 less than what they put away to begin with.

For the latest money news, advice and saving tips, scroll down.

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