The 30-year-old, who was born and bred in the capital, finally purchased the three-bed house he now calls home in Mitcham in January this year.
Speaking to The i Paper, the communications worker said: “I opened my LISA back in 2016 with Skipton, paying in the full £4,000 allowance most years and getting the 25 per cent government bonus.
At first, Mr Absensur and his partner were looking at flats in south London, in places like Tooting, Brixton and Clapham, but realised they could get more for their money if they went a little further out.
“Mitcham has this unique charm, walking around feels like stepping back into a 1960s or 70s village, with beautiful green spaces, a proper sense of community, and a real mix of cultures.
Although, he is happy and settled now, Mr Absensur feels cheated due to the restrictions that come with the savings vehicle.
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But funds can only be withdrawn penalty-free if the value of the home you are buying is less than £450,000. Anything over this amount incurs a 25 per cent withdrawal charge, which means you could get back less than you put in.
By the time he was ready to buy with his long-term partner, he had saved around £32,000 – an amount that rose to £40,000 when counting the government bonus.
He explained: “I’d been diligently saving, thinking I was doing the right thing, only to be told that we couldn’t actually use the money for our home.
“The penalty is brutal – you don’t just lose the government bonus, you lose 25 per cent of your total savings plus interest, so you actually end up with less than you put in.”
The money they lost was meant for legal fees and stamp duty, he said. Instead, he had to borrow money from his grandparent’s business, which he is now paying back at £400 a month.
MPs on the Treasury Committee have been gathering evidence on whether the product is still fit for purpose in recent months.
Mr Abensur was lucky that the buying process was not delayed because of these complications. He now says that he “regrets” using a LISA.
“We ended up with a smaller deposit, a higher mortgage rate, and had to rely on family help. We’re hoping to remortgage soon to get a better rate and finally start paying it down properly.”
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