The Help to Buy ISA is a Cash ISA launched by the UK government in December 2015 to make saving for a first home easier. New accounts closed on 30 November 2019, but if you already have one, you can keep saving into it until 30 November 2029 and claim your 25% government bonus on the closing balance when you buy.
This guide is for existing Help to Buy ISA holders who are getting close to buying their first home, thinking about a transfer, or simply wondering whether the account is still worth keeping.
We walk you through how the 25% bonus works, the key deadlines you need to know, how the scheme compares to the Lifetime ISA, and what to do in three common scenarios.
If you're planning to buy your first home, knowing how your savings fit into the wider mortgage process is important. Habito is a mortgage broker that helps people understand first-time buyer mortgages and how their savings could support a home purchase.
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Your home may be repossessed if you do not keep up repayments on your mortgage.
This article is for general information only and isn't personal financial or investment advice.
The scheme launched as a way to make homeownership more achievable for first-time buyers. The Lifetime ISA launched in April 2017 as an alternative for new savers, and the Help to Buy ISA continued accepting new applications until it closed entirely on 30 November 2019.
Three dates matter for anyone still holding an account:
Miss the bonus claim date and you forfeit the government top-up entirely, even if you've been saving for years. It's the final deadline and there's no extension.
The contribution rules are straightforward. When you opened the account, you could deposit up to £1,200 in the first calendar month. After that, the limit drops to £200 per calendar month.
If you skip a month, you can't make it up the following month. The £200 limit doesn't roll over. Missed months are simply gone.
Withdrawals are permitted at any time without a government penalty. It does reduce your closing balance, and because the bonus is calculated on that closing balance at the point of purchase, any withdrawal reduces the bonus you'd receive. You also can't make up a missed contribution in the month after a withdrawal.
To qualify for the bonus, you typically need to have saved at least £1,600 in the account. For more on how deposits fit into your overall purchase plan, see our guide on how mortgage deposits work.
The government adds 25% on top of the closing balance in your Help to Buy ISA when you buy your home. Two thresholds define the range:
Worked example: A saver who deposited £1,200 in the first month and £200 every month after that would reach £12,000 after approximately 55 months and qualify for the full £3,000 bonus.
If you're looking for a Help to Buy ISA calculator, multiplying your closing balance by 0.25 will give you a quick estimate of the bonus (up to the £3,000 cap).
The 25% government bonus isn't paid into your account while you're saving. Instead, it's paid to your solicitor when you buy your home and used as part of the purchase. You'll need to meet the eligibility rules and buy a qualifying property to receive it.
If you're likely to buy a property above the Help to Buy ISA price limits, it may be worth comparing the features and eligibility requirements of a Lifetime ISA
The bonus is only available when buying a property that falls within the government's price caps:
These caps apply to the full property price, not a buyer's share. This matters for anyone buying through shared ownership. The £250,000 or £450,000 limit applies to the total property value, not just the portion you're purchasing.
If you're buying with someone else, check the rules before you assume you're eligible. If you and a partner each hold a Help to Buy ISA, you can each claim your own bonus, but the property still needs to fall under the relevant price cap. The cap doesn't double when there are two buyers.
The Help to Buy ISA rules apply across the UK. However, property taxes and parts of the home-buying process can differ between England, Scotland, Wales, and Northern Ireland. If you're buying your first home, check the rules that apply where you live.
To qualify for the bonus, you must meet the following criteria:
You don't have to be named on the mortgage to claim the bonus, but you must be on the property's title deed. For joint purchases, each first-time buyer with their own Help to Buy ISA can claim their bonuses separately.
The first-time buyer definition is strict. Previous ownership disqualifies you, including ownership abroad and inherited property. If you're unsure whether you qualify, get that confirmed early.
The bonus doesn't arrive automatically. Your solicitor or conveyancer does most of the work, but only if you get things moving at the right time.
Solicitors can also charge up to £50 plus VAT to handle the bonus claim. It's a small cost, but factor it in when calculating the overall cost of buying. For a full breakdown of what solicitors charge, see our guide on solicitor and conveyancer fees.
The bonus must be claimed within 12 months of closing the account. If your purchase is dragging on, keep track of that window. Our home-buying timeline covers the typical stages from offer to completion.
Property purchases fall through more often than most people expect. If yours does after you've already closed your Help to Buy ISA, there is a process to reopen it.
Your solicitor or conveyancer will issue a Purchase Failure Notice (PFN), a document confirming that the purchase did not complete. With this notice, you have 12 months from the date the account was closed to reinstate it.
If your account is reinstated, your original closing balance is put back into the account. This money doesn't count towards your current ISA allowance because it's treated as a reinstatement rather than a new deposit.
Reinstating your account doesn't reset the scheme's overall deadlines. You can still only save until 30 November 2029, and the bonus must still be claimed by 1 December 2030. The PFN process allows you to reinstate the account, but it does not extend the scheme deadlines.
The table below covers the key differences.
Neither account is the better choice in every situation. Your age, buying timeline, target property price, and whether you want the retirement element can all affect which one makes more sense. For many people, the property price cap is where the Help to Buy ISA starts to feel restrictive. In many parts of the UK, £250,000 doesn't go very far.
For a deeper look at the Lifetime ISA, including its rules and how the bonus works, read the Lifetime ISA explained.
You can hold both accounts at the same time and pay into both in the same tax year. However, you can only claim a government bonus from one account when you buy your home.
You can transfer a Help to Buy ISA into a Lifetime ISA, but the transferred amount counts toward your £4,000 Lifetime ISA annual limit for the tax year.
A Lifetime ISA must be open for at least 12 months before you can use it to buy a home without triggering the withdrawal charge. Transfer close to a purchase and you could find yourself unable to access the new Lifetime ISA bonus at completion.
Two scenarios where the decision becomes clearer:
Moving funds from a Lifetime ISA back into a Help to Buy ISA would also trigger the Lifetime ISA withdrawal charge, a 25% government penalty.
There's no universal answer to whether you should keep, transfer, or close a Help to Buy ISA. The right move depends on how close you are to buying, your age, the property price range you're targeting, and whether retirement savings are a priority. The three scenarios below cover the most common situations.
Stick with the Help to Buy ISA and make sure you claim the bonus in time. Opening a Lifetime ISA now would mean the 12-month waiting period could stop you from using its bonus when you buy your home. Your solicitor handles the Help to Buy ISA bonus claim after exchange. Your main job is to make sure your closing statement is ready when they need it.
Transferring to a Lifetime ISA could make sense. The higher annual contribution limit, higher property price limit outside London, and the ability to earn interest on the monthly bonus could help you build a larger deposit over time. While you're comparing your options, check what interest rate your current Help to Buy ISA provider is paying. Differences between providers can be bigger than many people realise.
Withdrawing your savings and any interest earned is the simplest path. You forfeit the government bonus, but there's no government penalty on the withdrawal. Unlike the Lifetime ISA, which charges 25% on non-qualifying withdrawals.
Here are answers to some of the most common questions about Help to Buy ISAs.
The bonus is 25% of your closing balance, up to a maximum of £3,000. You need at least £1,600 saved to qualify for any bonus at all (that gets you £400). The bonus is paid at property completion through your solicitor. It's not added to your account during the saving period, which means you can't earn interest on it the way you can with a Lifetime ISA.
New accounts closed on 30 November 2019, savings end on 30 November 2029 and the bonus must be claimed by 1 December 2030. Miss that final deadline and the government top-up is gone. Your savings and any interest remain yours, but the bonus is forfeited regardless of how long you've been saving.
Yes, withdrawals are permitted at any time without a government penalty. The catch is that withdrawing reduces your closing balance, which directly reduces the bonus you'd receive. You also can't make up the missed contribution the following month. The £200 monthly limit doesn't carry over.
Yes, Help to Buy ISA contributions count towards your £20,000 annual ISA allowance. Since the ISA rules changed in 2024, many savers can pay into more than one Cash ISA in the same tax year, as long as they stay within the overall allowance.
The 25% government bonus can significantly increase the value of savings held within a Help to Buy ISA, subject to scheme eligibility rules and bonus limits. The account tends to work best if the home you're planning to buy falls within the Help to Buy ISA property price limits: £250,000 outside London or £450,000 in London. IIf you're likely to buy a property above the Help to Buy ISA price limits, it may be worth comparing the features and eligibility requirements of a Lifetime ISA, but remember that it must be open for at least 12 months before you can use the bonus to buy a home.
It's the account reference number your ISA provider assigned when you opened the account. You'll find it on your statements and in your online banking portal, or you can contact your provider directly. Your solicitor will need it to apply to HMRC for the bonus on your behalf.
If you're getting close to using your Help to Buy ISA bonus, the next step is understanding your mortgage options. Options available to you will depend on lender criteria, affordability, and your personal circumstances.
See what you could be eligible for, or read more about what a mortgage in principle is and how it fits into the buying process.
For a full overview of what buying your first home involves, our first-time buyer guide covers the key stages from saving to completion.
Your home may be repossessed if you do not keep up repayments on your mortgage.
This article is based on guidance published by GOV.UK, HM Revenue & Customs (HMRC), MoneyHelper and Citizens Advice. Readers should check the latest official guidance before making financial decisions..
Information is correct at the time of writing and may change. Always check the latest scheme guidance and terms before making a decision.
Last updated: June 2026
How does the 25% Lifetime ISA withdrawal penalty work, when can you withdraw penalty-free, and what does the 2026 LISA reform mean for your savings?
How does the 25% Lifetime ISA withdrawal penalty work, when can you withdraw penalty-free, and what does the 2026 LISA reform mean for your savings?
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