Hi Paul — stupid question about the lifetime ISA, that i assume there’s probably a simple answer to….
Not everyone has £4000 to save each year, but 25% is a massive return on investment — way above commercial rates of interest.
What is to stop someone without savings taking out a loan for up to 4k, either from a bank or a private loan and reaping the rewards? The £1000/25% provided by the government would be more than enough to pay off the interest and still retain a profit - or split the profits with the person who leant them the money (both would still get higher than commercial rate returns).
Am i missing something here?