At a glance
You can no longer open a new Help to Buy ISA.
If you've already got a Help to Buy ISA you can continue paying in a maximum of £200 a month.
You can earn a maximum tax-free bonus of £3,000 from the government on savings of £12,000.
The Lifetime ISA replaced the Help to Buy ISA.
What is a Help to Buy ISA?
A Help to Buy ISA is a type of savings account that’s incentivised by the government to help first-time buyers save up a deposit for a mortgage.
Help to Buy ISAs are no longer available to new savers. They closed to new applications in 2019. But if you already have a Help to Buy ISA open you can continue to pay into it until 30 November 2029. After that deadline passes you have a further 12 months to claim your bonus on a house purchase – up to 1 December 2030.
The Lifetime ISA (LISA) has replaced the Help to Buy ISA. This is aimed at helping people aged 18-39 at the time of opening the account to save for their first home or a pension.
However, in the 2025 Budget the government announced plans to further reform the Lifetime ISA. It will publish a consultation in early 2026 on the implementation of a new, simpler ISA product to support first-time buyers to buy a home. Once available, this new product will be offered in place of the Lifetime ISA.
If you already have a Help to Buy ISA
You can pay in up to £200 each month.
The government will top up your savings by 25% (up to a maximum of £3,000) when you buy your first home.
If you’re buying with someone who also has a Help to Buy ISA, both of you will get the 25% bonus.
If you save more than £12,000 you won't get a bonus on anything above this figure.
You can pay into the ISA until November 2029. You can claim the 25% bonus until November 2030.
When you buy your property
The home you buy must:
Have a purchase price of up to £250,000 (or up to £450,000 in London).
Be the only home you own.
Be where you intend to live.
Your solicitor or conveyancer will apply for the extra bonus 25%. You don’t have to pay it back or pay tax on it.
For example, if you have saved £4,000 in your Help to Buy ISA the government will pay a £1,000 bonus (25%) so you'll have a total of £5,000 for your new home. If you save £12,000, you'll get the maximum available bonus of £3,000.
What’s the difference between a Help to Buy ISA and a Lifetime ISA?
Like the Help to Buy ISA, the LISA also includes a 25% savings bonus from the government. But it’s designed to be used to save for retirement, or to buy a first home.
With a LISA you can save up to £4,000 a year (up to age 50) compared with £200 a month (£2,400 in total) in a Help to Buy ISA.
This means that the annual maximum bonus for a Lifetime ISA is higher. LISAs are also only open to people aged 18 to 39 at the time of opening, whereas a Help to Buy ISA was available to everyone over 16.
You can use your LISA savings to help you buy your first home if all the following apply:
The property costs £450,000 or less
You buy the property at least 12 months after you make your first payment into the Lifetime ISA
You use a conveyancer or solicitor to act for you in the purchase – the ISA provider will pay the funds directly to them
You’re buying with a mortgage.
Even if you already have a Help to Buy ISA you can still open a LISA and pay into both in the same tax year, up to the current total ISA limits. But you’ll only be able to use one towards buying your first home.
Read our guide to find out more about Lifetime ISAs.
Can I switch from a Help to Buy ISA to a Lifetime ISA?
Yes, you can transfer your savings into a Lifetime ISA but any money you move will count towards the annual deposit limit for the Lifetime ISA. Currently, this is £4,000 per year. So, if you have more than £4,000 in your Help to Buy ISA you'll have to wait to transfer the remainder in the following year.
If you do switch, you’ll lose the Help to Buy bonus but the savings you transfer will instead qualify for the LISA bonus.
For more information on the different ISA accounts available, read our guide.
Can two people use a Help to Buy ISA to buy a property together?
Yes. If you’re saving to buy your first home with a partner and they also have a Help to Buy ISA, you can use the savings from both towards your house purchase. So, you could get up to an additional £6,000 from the government towards your deposit.
How do I get my bonus?
To qualify for the bonus, you have to meet certain conditions:
You need a minimum of £1,600 saved in your Help to Buy ISA
You’re a first-time buyer and you don’t own any other property, anywhere in the world
You’re buying a house with a purchase price under £250,000 (or £450,000 in London)
You intend to live in the home, not rent it out.
Your Help to Buy savings are not tied into a house purchase. You can withdraw money or close your ISA at any time, but you’ll only receive the bonus if you use your savings towards buying a new home. And this must be done directly from the account.
With a Lifetime ISA, you'll be penalised for withdrawing the money for any reason other than to buy a house or put into retirement.
How do I claim the bonus? Is it applied directly to my account?
You won’t see the bonus appear in your Help to Buy ISA like you would with interest, because you’re only eligible for it when you use the savings to buy your first home.
When you’re ready to buy, you need to apply for the bonus through your solicitor – don’t withdraw your savings directly or you could lose your bonus. Once you have an offer accepted on a house, follow the steps below to claim your Help to Buy bonus:
Tell your ISA provider that you’re ready to buy and ask them to close your account. They’ll send you a closing statement.
Give the closing statement from your ISA provider to your solicitor or conveyancer and ask them to apply for the government bonus.
Your solicitor will receive the bonus and they’ll add the full amount to your deposit to complete the purchase.
Your mortgage provider will also take the bonus into account when calculating your mortgage loan amount.
One thing to be aware of is that you can't put the Help to Buy bonus towards the exchange deposit, which is often 10% of the purchase price, paid when you exchange contracts. That's because the bonus is only paid on completion of the purchase.
If you don't have enough cash saved to cover the exchange deposit (or are buying with a 95% mortgage so don't have a 10% deposit), talk to your solicitor who may be able to negotiate the size of the exchange deposit down.
What if my house sale falls through? Can I reopen my Help to Buy ISA?
Buying a home is rarely straightforward, so it’s worth knowing that if your property purchase doesn’t go through, you have the right to reopen your Help to Buy ISA account.
You’ll need to get a Purchase Failure Notification (PFN) from your solicitor or conveyancer to send to your ISA Provider. You need to send this within 12 months of the date you closed your Help to Buy ISA account.
Looking for something else?
As well as writing for Churchill and Privilege insurance websites, Karen’s CV includes working with M&S, Debenhams, Tesco, Sainsbury’s and John Lewis. With over 20 years of editorial experience for big household names she leads a talented content team with a focus on simplifying personal finance for everybody.
Ele Clark is an award-winning editor who has held leadership roles at Which? and news-stand publications in London and Dubai. She’s appeared across the press and media, including BBC’s Panorama. With almost 20 years’ experience in personal finance, insurance and consumer journalism, she leads a talented team at Compare the Market, creating insightful, accessible content to help people make informed financial decisions.
Sajni is passionate about finding money products to help you make great financial decisions. She keeps track of the latest trends and evolving markets to find new ways to help you save money.
Our content is written by a Compare the Market expert, backed by data and enhanced by technology. Find out how we ensure accuracy and quality in our Editorial Guidelines.
