Help to Buy ISAs closed to new applicants in November 2019, so if you have one, you opened it a while ago. But they're still very much alive — existing holders can keep saving into them until November 2029, and claim the government bonus until November 2030.
If you've got a Help to Buy ISA sitting somewhere, this guide covers what it's worth, how the bonus actually gets claimed (it's not automatic), what the deadline means for you, and whether it's worth switching to a Lifetime ISA instead.
How the Help to Buy ISA Bonus Works
The government bonus on a Help to Buy ISA is 25% of what you've saved — up to a maximum bonus of £3,000. To get the full bonus, you need to have saved £12,000.
A few important things about how the bonus works:
You don't receive the bonus in cash. The bonus is paid directly to your solicitor when you complete on a property purchase. It doesn't go into your ISA, and you can't use it for a deposit exchange — only for completion. This catches people out. If you need the full amount for your exchange deposit, you'll need separate funds for that stage.
The minimum balance to claim any bonus is £1,600. Below that, no bonus is payable.
The property must meet the criteria. The purchase price cap is £250,000 (£450,000 in London). The property must be your only home, bought with a mortgage, and must be your main residence.
You must be a first-time buyer. If you've previously owned a property anywhere in the world, you're not eligible.
The bonus is paid at completion, not exchange. Plan your finances accordingly — you cannot rely on the bonus for your exchange deposit.
The Deadlines — What You Need to Know
There are two key dates for Help to Buy ISA holders:
November 2029 — the last date to make contributions. After this, the account closes to new deposits. If you haven't reached £12,000 by then, you won't get the maximum bonus.
November 2030 — the last date to claim the bonus. Your property purchase must complete by this date for the bonus to be paid. If you haven't bought by then, the ISA converts to a standard cash ISA and the bonus is lost.
If you're planning to buy within the next few years, these deadlines are comfortable. If you're further from buying — or not certain you'll buy at all — it's worth thinking about whether the Help to Buy ISA is still the right place for your money.
Continuing to Save Into It
You can still pay in up to £200 per month (and a one-off £1,000 in the first month you opened it, though that opportunity has passed for most holders). The interest rate varies by provider — it's worth checking what your current account pays and whether switching the ISA to a better-rate provider makes sense.
ISA transfers are allowed. You can move your Help to Buy ISA from one bank to another without losing the bonus eligibility, as long as you use the official ISA transfer process and the receiving bank accepts Help to Buy ISA transfers. Withdrawing and re-depositing is not a transfer and will affect your bonus.
Help to Buy ISA vs Lifetime ISA — Should You Switch?
This is the most common question for Help to Buy ISA holders, and the answer is genuinely: it depends.
The Lifetime ISA has a higher maximum bonus. Up to £1,000 per year (25% of the £4,000 annual allowance), up to a maximum of £33,000 in bonuses over your saving years. The Help to Buy ISA bonus caps at £3,000.
The LISA has a higher property price cap. £450,000 anywhere in the UK, compared to Help to Buy's £250,000 (£450,000 in London only). If you're buying outside London and your target property is above £250,000, the Help to Buy ISA won't work — a LISA might.
Switching has a cost. If you transfer a Help to Buy ISA into a Lifetime ISA, it counts towards your LISA annual allowance in that tax year. If your Help to Buy ISA balance is significant, you may not be able to transfer it all in one year.
The LISA withdrawal penalty is significant. If you withdraw from a LISA for any reason other than buying a first home or reaching age 60, there is a 25% government penalty — which effectively costs you some of your own money, not just the bonus. The Help to Buy ISA allows penalty-free withdrawal at any time (you just lose the bonus if you don't use it on a qualifying purchase).
Quick summary: Buying under £250,000 (or London under £450,000): Help to Buy ISA is simpler and still works. Buying above £250,000 outside London: LISA is worth considering. Not certain you'll buy: Help to Buy is safer due to flexible withdrawal. Want maximum bonus: LISA offers more. See our ISA guide for full Lifetime ISA details.
It's worth speaking to a mortgage adviser or financial adviser before switching, particularly if your balance is significant. This is one situation where professional advice is genuinely useful.
What Happens if You Don't Buy
If you decide not to buy, or you don't complete a purchase before the November 2030 deadline, you don't lose your money — only the government bonus. The ISA converts to a standard cash ISA and your savings, plus any interest earned, remain yours.
This is one of the advantages of the Help to Buy ISA over the Lifetime ISA — there's no penalty for not buying, just the loss of the bonus you never received anyway.
Checking Your Balance and Bonus Entitlement
Many people opened a Help to Buy ISA several years ago and haven't looked at it recently. If that's you, it's worth:
- Logging in to check the current balance
- Calculating what the 25% bonus would be on your current balance
- Checking what interest rate you're currently earning
- Noting the provider — some banks have merged or rebranded since 2019
If you've lost track of which bank holds it, a Subject Access Request to your previous address's bank statements, or checking old emails for account opening confirmations, usually helps.
For full scheme details and current rules, visit gov.uk.
Frequently Asked Questions About Help to Buy ISAs
No. Help to Buy ISAs closed to new applicants on 30 November 2019. If you don't already have one, the Lifetime ISA is the closest current equivalent for first-time buyers.
No. The bonus is paid at completion, not at exchange. Your solicitor claims it from HMRC as part of the completion process. You'll need separate funds for the exchange deposit if one is required.
Both of you can use your Help to Buy ISA bonuses on the same purchase, as long as you're both first-time buyers. You'd each claim your own bonus separately through your respective solicitors.
Yes, but it counts towards your LISA annual allowance (£4,000 per tax year) in the year you transfer. If your Help to Buy ISA balance exceeds £4,000, you'd need to spread the transfer over multiple tax years.
Once you've completed a purchase using the bonus, the ISA is closed. If you completed a purchase and didn't claim the bonus (or the purchase didn't qualify), the account continues as a standard cash ISA.
No. The government bonus is not taxable. Interest earned within the ISA is also tax-free, as with all ISAs.
This guide is for general information only and is not financial advice. Help to Buy ISA rules, deadlines and property price caps are set by the government and are subject to change. For guidance specific to your situation, speak to a mortgage adviser or financial adviser. Current scheme details are available at gov.uk.