What Is a Help to Buy ISA and Can I Still Use It?

The Help to Buy ISA was a government-backed savings account that paid a 25% bonus when you used the money toward your first home. The scheme closed to new applicants on 30 November 2019, but if you opened one before that date you can keep saving into it until 30 November 2029, and claim the bonus until 1 December 2030.

This guide explains how it works for existing holders, why it's almost always worse than a Lifetime ISA for new savers, and exactly how to claim the bonus.

How the Help to Buy ISA works

If you opened a Help to Buy ISA before the November 2019 deadline:

• You can save up to £200 a month (plus a £1,200 opening lump sum if you opened with one)
• The government pays a 25% bonus on what you've saved when you complete on your first home
• The minimum bonus claim is £400 (so you must have saved at least £1,600)
• The maximum bonus is £3,000 (on £12,000 of savings)
• Interest is tax-free, like any cash ISA

So if you save the full £200/month for 5 years, you'd contribute £12,000, earn maybe £600 in interest, and trigger a £3,000 government bonus. Total in your pocket: ~£15,600.

Eligibility to claim the bonus

The Help to Buy ISA bonus is paid only when you:

• Are a first-time buyer (never owned property anywhere in the world)
• Are buying a property to be your main residence
• Are buying with a mortgage (not cash)
• The property costs £250,000 or less (or £450,000 in London)
• You are at least 16 at completion

The London boundary uses the Greater London Authority area — so it includes parts of Bromley, Bexley, etc. Your conveyancer can confirm the postcode classification.

How to claim the bonus

The bonus is claimed by your solicitor or conveyancer during the buying process, not by you directly. The process:

1. Two weeks before completion, ask your bank to close your Help to Buy ISA and issue a closing statement showing the final balance
2. Pass this to your conveyancer
3. They submit a claim to the scheme administrator
4. The bonus arrives in time for completion and is added to your purchase funds
5. The conveyancer charges a small fee (usually £40–£60) for handling the claim — this is paid out of the bonus

Important: the bonus cannot be used for the deposit at exchange. It only arrives at completion. Your initial 5–10% deposit needs to be funded another way (your savings, gifted deposit, etc).

Help to Buy ISA vs Lifetime ISA

If you're starting fresh, the Lifetime ISA almost always wins. Compared properly:

The fact that the Lifetime ISA bonus arrives monthly means you can use it as part of your exchange-stage deposit, not just completion. That alone makes it more flexible.

The full comparison is in our Help to Buy ISA vs Lifetime ISA guide.

Can you have both a Help to Buy ISA and a Lifetime ISA?

Yes — but you can only claim a bonus from one of them when you buy. Most people who have both:

1. Stop contributing to the Help to Buy ISA
2. Funnel new savings into the Lifetime ISA (where the £4,000/year cap is much higher)
3. Keep the Help to Buy ISA in case interest rates make it worth holding for the bonus

If your Help to Buy ISA balance is under £1,600 (no bonus payable), some savers transfer it into a Lifetime ISA — note that this counts toward the LISA's £4,000 annual limit.

Common Help to Buy ISA mistakes

Withdrawing the money. If you take the savings out before completion, no bonus is paid. The cash is yours, but you've lost the government top-up.

Buying above the price cap. £250,000 is a hard ceiling outside London. Even £250,001 disqualifies you. Negotiate down or accept losing the bonus.

Buying without a mortgage. Cash buyers are not eligible.

Forgetting to tell the conveyancer early enough. They need 2 weeks. If you wait until the week before completion, the bonus may be paid after — and if it arrives after completion, it's lost.

Closing the ISA too early. Close it 1–2 weeks before completion, not months in advance. The closing statement has a 12-month validity.

What if you decide to use it for retirement instead?

You can. Just withdraw the funds — no penalty, but no bonus. The cash returns to you with the interest you earned. There's no requirement to use it for property; the bonus is the only thing tied to a property purchase.

What happens if you don't end up buying?

Same as above — withdraw freely, no penalty. You only lose the government bonus, not your own money.

Should I switch from Help to Buy ISA to Lifetime ISA?

Generally, yes if:

• You won't max out a £3,000 bonus on the Help to Buy ISA
• You're buying outside London above £250k (Help to Buy ISA cap is too low)
• You want the bonus available at exchange

Stay with the Help to Buy ISA if:

• You're close to completion and the conveyancer process is already in motion
• You're under 18 (LISA requires age 18+)
• The £250k cap doesn't constrain you and you're already near the £3,000 maximum

Get a free mortgage quote — most online brokers can sense-check whether your Help to Buy ISA bonus is being used efficiently.

Frequently asked questions

Can I open a new Help to Buy ISA in 2024? No. The scheme closed to new applicants on 30 November 2019.

What is the deadline to claim the bonus? 1 December 2030. After that the scheme ends entirely.

Can I save more than £200 a month? No, that's a hard limit. You can save less, or skip months entirely.

Does the bonus count toward my mortgage deposit? Yes, it's added to your purchase funds at completion and reduces the loan you need.

Can I use a Help to Buy ISA for shared ownership? Yes, providing the full market value of the property is under £250k (or £450k in London) — not just your share. See shared ownership explained.

This article is for informational purposes only and does not constitute financial advice. Always consult a qualified mortgage adviser before making a decision.