Hundreds of thousands of people opened Help to Buy ISAs between 2015 and 2019 and have since forgotten about them, stopped contributing, or are unclear how the bonus works. If you are in this position, there are a few things worth understanding before the claim window closes.
How the bonus works
25% government top-up — but only at completion
25% of your total savings balance, minimum £400 (requires £1,600 saved), maximum £3,000 (requires £12,000 saved). You can contribute up to £200/month after an initial £1,200 deposit.
The bonus must be claimed by 1 December 2030. If you buy a property after this date using Help to Buy ISA funds, no bonus is available.
£250,000 outside London; £450,000 in London. Properties above these thresholds are ineligible for the bonus, even if you have an existing Help to Buy ISA.
Help to Buy ISA vs Lifetime ISA
Which is better if you have both — or are deciding between them
| Feature | Help to Buy ISA | Lifetime ISA |
|---|---|---|
| Annual limit | £2,400 (£200/month after initial £1,200) | £4,000 |
| Max bonus | £3,000 lifetime | £1,000/year (uncapped over time) |
| Property limit | £250,000 (£450,000 London) | £450,000 nationwide |
| When bonus paid | At completion via solicitor | Monthly into account |
| Non-property use | Withdraw any time — just lose the bonus | 25% penalty on full withdrawal (loses own money) |
| Bonus on interest/growth | No — bonus is only on cash contributions | Yes — bonus paid on contributions, grows with account |
If you have both a Help to Buy ISA and a Lifetime ISA, you can only use the bonus from one of them toward the same property purchase. You would typically choose whichever gives the larger bonus. The LISA bonus compounds inside the account; the HTB bonus is a fixed 25% of contributions only.
If your account is dormant
What to do with a Help to Buy ISA you have not touched in years
Many Help to Buy ISAs were opened with banks offering competitive rates at the time. Those rates may have changed significantly. Log in, check the current interest rate, and compare it to other easy-access cash options. If your HTB ISA is earning 1% while high-yield accounts offer 4–5%, you may want to maximise contributions (£200/month) to build toward the maximum £3,000 bonus, but keep other savings in better-rate accounts.
If you transfer HTB ISA funds to a LISA, the transfer counts as a LISA contribution in the year it is made, eating into your £4,000 annual LISA limit. This is worth understanding before moving money between the two products.
Should you still be contributing to your Help to Buy ISA?
It depends on your target property price, timeline, and whether you also have a Lifetime ISA. Ask Franky to work through the right strategy for your situation.
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