UK Help to Buy ISA Guide (Closing, Transfer to LISA, 2026)

What Is Help to Buy ISA

The Help to Buy ISA was a government scheme launched in December 2015 to help first-time buyers save for a home deposit. The key benefit is a 25% government bonus on savings, up to a maximum bonus of £3,000. To get the full £3,000 bonus, you need to save £12,000. You can save up to £200 per month into the account, with an initial deposit of up to £1,000 allowed when opening. The maximum you can save in total is £12,000 — any additional savings above this do not attract the bonus. The scheme opened in December 2015 and closed to new accounts on 30 November 2019. If you did not open a Help to Buy ISA by that date, you cannot open one now. However, if you hold an existing account, you can continue saving into it indefinitely — there is no closing date for existing holders. The Help to Buy ISA can be a Cash ISA or a cash savings account with ISA status. Most providers offer a variable interest rate (typically 0.5–2% in 2026) in addition to the government bonus. The bonus is paid when you complete the purchase of your first home, which must be a residential property (not buy-to-let) and must be in the UK. The bonus is claimed through your solicitor or conveyancer and paid at completion. Compare with Lifetime ISA →

Current Rules 2026

For existing Help to Buy ISA holders, the rules in 2026 remain largely unchanged. You can save up to £200 per month into the account, plus an initial deposit of up to £1,000 if you have not already made it. Annual contributions are limited to £2,400 (12 months x £200). The government bonus is 25% of your savings, with a maximum bonus of £3,000 on £12,000 saved. The bonus is paid when you buy your first home. The property must be under £250,000 (or £450,000 in London). This price cap has not been updated since the scheme launched in 2015, despite significant house price inflation in many areas. If you are buying in London, the £450,000 limit still covers most first homes. Outside London, the £250,000 limit has become increasingly restrictive — in many parts of the South East, South West, and even some Northern cities, average first-time buyer prices exceed this cap. If the property price exceeds the cap, you cannot claim the bonus, even if you have saved into the account. This is a critical restriction to check before relying on the Help to Buy ISA. The property must be bought with a mortgage (not cash purchase) and must be your only residence. You must be a first-time buyer — defined as not owning (or having previously owned) a property anywhere in the world. The bonus can be used for the deposit on a new-build or existing property. It cannot be used for buy-to-let properties or second homes. Complete first-time buyer guide →

Help to Buy vs LISA

The Lifetime ISA (LISA) is the successor to the Help to Buy ISA with more generous terms. Key differences: No transfer from Help to Buy to LISA is allowed — you cannot directly transfer your Help to Buy ISA into a Lifetime ISA. However, you can withdraw from your Help to Buy ISA and pay into a LISA using your ISA allowance (up to £20,000 in total across all ISAs). The LISA has a £4,000 per year allowance (within the overall £20,000 ISA limit) and offers a 25% bonus up to £1,000 per year. The maximum bonus from a LISA over time is theoretically unlimited (capped at £1,000 per year, but you can contribute for many years). The Help to Buy ISA maximum bonus is capped at £3,000 total. The LISA has a £450,000 maximum property price everywhere, not just London. This is much more flexible than the Help to Buy ISA's £250,000 limit outside London. To open a LISA, you must be aged 18–39. You can contribute until age 50. The Help to Buy ISA has no age limit for opening (though it is closed to new accounts). Both can be used for the same house purchase — you can claim the Help to Buy ISA bonus and the LISA bonus on the same property, but they are separate schemes and you must meet the conditions for each. If you withdraw from a LISA for any reason other than buying a first home or retirement, you pay a 25% withdrawal penalty (effective recovery of the bonus plus a small additional charge). The Help to Buy ISA has no penalty for withdrawal — you just lose the bonus. Full Lifetime ISA guide →

Best Strategy for Holders

If you already have a Help to Buy ISA, your strategy depends on your age, savings, and property plans. Keep the HTB ISA if you already have significant savings in it — you get the bonus on everything you have already saved. The bonus is 25%, which is a fantastic risk-free return. Even if you cannot add much more, the bonus on existing savings is worth claiming. A LISA is better for additional savings if you are under 40. The LISA allows £4,000 per year with a £1,000 maximum annual bonus, compared to the Help to Buy ISA's £2,400 per year with a £600 maximum annual bonus. If you can save more than £200 per month, redirect the excess to a LISA. Maximise LISA £4,000/year for £1,000 bonus — if you are under 40 and can afford to save £333 per month, a LISA gives you £1,000 free bonus every year. The HTB ISA gives you at most £600 per year. The LISA is clearly superior for anyone who can save more than £200 per month. Transferring HTB to LISA is not possible — but you can withdraw your HTB savings and pay them into a LISA within the same tax year, provided you stay within the £20,000 overall ISA allowance. For example, if you have £10,000 in a HTB ISA, you could withdraw it and pay £4,000 into a LISA and £6,000 into another ISA (e.g., Cash ISA or Stocks and Shares ISA). Alternatively, you could keep the HTB and add a LISA alongside it. For savers under 40, the best strategy is often: continue the HTB ISA at £200/month to get the bonus on the bonus-eligible amount, and open a LISA to save any additional funds up to £4,000/year for the £1,000 bonus. After the HTB ISA reaches £12,000 (and you have claimed the full £3,000 bonus), redirect all savings to the LISA. S&S ISA for investing beyond home deposit →

Withdrawing Bonus

Claiming the Help to Buy ISA bonus is done through your solicitor or conveyancer when you complete the purchase of your first home. You apply for the bonus using the Help to Buy: ISA form — the form is available on the government website and must be completed by you and submitted by your solicitor. The solicitor receives the bonus payment from HMRC and applies it to your house purchase at completion. The bonus is paid directly to your solicitor, not to you. The timeline for the bonus payment is typically 5–10 working days. You must be a first-time buyer — you cannot have owned a property before anywhere in the world. The property must be under £250,000 (£450,000 in London). The property must be bought with a mortgage — cash purchases are not eligible. It must be your only residence — you cannot use the bonus for a buy-to-let or second home. You must close the Help to Buy ISA when you claim the bonus — the account is closed and the balance along with the bonus goes toward your purchase. You can only claim the bonus on one property purchase. The bonus cannot be used for the deposit reservation fee, survey costs, or solicitor fees — it is applied to the purchase price at completion. If you have both a Help to Buy ISA and a Lifetime ISA, you can use both for the same house purchase, but you must meet the conditions for each scheme. The combined bonus from both can make a significant difference to your deposit. For example, with £12,000 in a HTB ISA (£3,000 bonus) and £4,000 in a LISA (£1,000 bonus), you would receive £4,000 in total government bonuses toward your home purchase. LISA bonus withdrawal process →

Future of Help to Buy ISA

The Help to Buy ISA is expected to continue until all accounts are closed. There is currently no forced closure date for existing accounts. The government has not announced any plans to wind down the scheme. However, the fact that it has been closed to new accounts since 2019 suggests the government considers it a legacy product, with the Lifetime ISA as its successor. Interest rates on most Help to Buy ISAs are very low — typically 0.5–2% in 2026. Some of the original providers have reduced rates to near-zero. If you have significant savings in a HTB ISA earning minimal interest, you may be better off withdrawing the savings (except the bonus-eligible portion) and depositing them in a higher-rate savings account or Cash ISA. Remember: only savings up to £12,000 attract the bonus. If you have saved £12,000, the bonus is maximised and any additional savings above that earn no bonus (and likely earn poor interest). In that case, you should definitely move excess savings elsewhere. For younger savers under 40, the Lifetime ISA is almost always a better option than the HTB ISA for future savings. The higher allowance (£4,000 vs £2,400), higher maximum bonus (£1,000/year vs £600/year), and higher property price cap (£450k everywhere vs £250k/£450k London) make the LISA superior. If you are under 40 and opened a HTB ISA before November 2019, your best strategy is to open a LISA alongside it and gradually shift your savings toward the LISA over time. For savers over 40 who cannot open a LISA, the HTB ISA remains the only government-backed first-time buyer savings incentive available. Other first-time buyer support schemes →

FAQs

Can I open a Help to Buy ISA now?

No. The Help to Buy ISA closed to new accounts on 30 November 2019. If you did not open one by that date, you cannot open one now. However, you can open a Lifetime ISA if you are aged 18–39, which offers a similar 25% bonus with higher limits.

Can I use a Help to Buy ISA and a Lifetime ISA for the same house?

Yes. You can use both for the same property purchase, provided you meet the conditions for each scheme. The Help to Buy ISA bonus is up to £3,000, and the LISA bonus can add up to £1,000 per year of contributions. Both bonuses can be combined.

What happens if the house I want to buy costs more than the Help to Buy ISA price cap?

If the property costs more than £250,000 (£450,000 in London), you cannot claim the Help to Buy ISA bonus. You can still use your savings toward the deposit, but the government bonus is lost. Check the price cap before relying on the HTB ISA bonus for your purchase.

Can I transfer my Help to Buy ISA to another provider?

Yes, you can transfer your Help to Buy ISA to another provider that accepts them. Some providers (including Halifax, Santander, Nationwide) continue to accept HTB ISA transfers. The transfer process is the same as transferring any ISA and typically takes 7–15 working days.

What happens to my Help to Buy ISA if I wait too long to buy a house?

Nothing — your Help to Buy ISA continues indefinitely. There is no time limit to claim the bonus. You can save into it for as long as you like, and claim the bonus when you eventually buy your first home, as long as you still meet the first-time buyer conditions and the property price cap is met.