Help to Buy ISA in 2026: Bonus, Eligibility, and Why LISA May Be Better
The Help to Buy ISA closed to new applicants in November 2019, but anyone who opened one before then can still pay in until November 2029 and claim the 25% government bonus on completion. This guide covers what existing HTB ISA holders need to know in 2026, the maximum £3,000 bonus, the property price caps, and the case for switching to a Lifetime ISA instead.
By FreeFinCalc Editorial · Updated April 9, 2026 · UK 2025-26 tax year data
The Help to Buy ISA was a government scheme designed to help first-time buyers save for a deposit, paying a 25% bonus on savings (capped at £3,000) when buying a first home worth £250,000 or less outside London or £450,000 in London. The scheme closed to new applicants on 30 November 2019 and was effectively replaced by the Lifetime ISA. However — and this is what most articles get wrong — anyone who opened a Help to Buy ISA before December 2019 can still pay in £200 a month until November 2029 and claim the bonus on a property purchase up to November 2030. This guide covers exactly what existing HTB ISA holders should know in 2026 and why most should also (or instead) be using a Lifetime ISA.
Help to Buy ISA Rules (Existing Account Holders)
Key rules for the legacy Help to Buy ISA in 2026.
| Rule | Detail |
|---|---|
| Who can pay in | Anyone with an existing HTB ISA opened before 30 Nov 2019 |
| Maximum monthly contribution | £200 a month (after the initial £1,200 first-month deposit) |
| Government bonus | 25% of total savings, paid on home completion |
| Minimum bonus | £400 (need £1,600 in the account) |
| Maximum bonus | £3,000 (need £12,000 in the account) |
| Property price cap (outside London) | £250,000 |
| Property price cap (London) | £450,000 |
| Must be first-time buyer | Yes — never owned property anywhere in world |
| Property type | Residential, mortgaged, in UK, will be your main residence |
| Deadline to pay in | 30 November 2029 |
| Deadline to claim bonus | 1 December 2030 |
How the £3,000 Maximum Bonus Works
The 25% bonus is paid on the closing balance of your HTB ISA at the time of purchase (savings plus interest), capped at £12,000 of contributions. To reach the maximum £3,000 bonus you need to have saved £12,000 in the account, which takes about 4 years and 6 months at the maximum £200 a month rate (plus the initial £1,200 lump sum). The bonus is not paid into the ISA itself and cannot be used for the deposit at exchange — it is paid by the government to your conveyancer at completion and applied to the purchase price. Your conveyancer applies for the bonus when you complete on the property; some charge a small fee for this service.
Lifetime ISA vs Help to Buy ISA
For first-time buyers in 2026, the Lifetime ISA (LISA) is generally a better option than the Help to Buy ISA. The LISA allows £4,000 a year of contributions versus the HTB\u2019s £200 a month (£2,400 a year), pays the same 25% bonus, and the property price cap is much higher at £450,000 anywhere in the UK. The LISA can also be invested in stocks and shares for potentially higher returns (HTB ISA is cash-only). LISA bonuses are paid monthly into the account, so they grow with you, rather than being paid as a one-off at completion.
| Feature | Help to Buy ISA | Lifetime ISA (LISA) |
|---|---|---|
| Status | Closed to new applicants | Open |
| Max contribution per year | £2,400 | £4,000 |
| Government bonus | 25% (max £3,000) | 25% (max £1,000/year) |
| Bonus paid | At property completion | Monthly into account |
| Property price cap (London) | £450,000 | £450,000 |
| Property price cap (outside London) | £250,000 | £450,000 |
| Investment options | Cash only | Cash or stocks & shares |
| Withdrawal penalty (non-purchase) | None — keep your money + interest | 25% penalty |
| Age limit to open | Closed | 18-39 |
Can I Have Both a Help to Buy ISA and a Lifetime ISA?
Yes, you can hold both a Help to Buy ISA and a Lifetime ISA at the same time and pay into both in the same tax year. However, you can only use the bonus from ONE of them when buying your first home. Most savers in this position contribute to the LISA up to its £4,000 annual limit (capturing £1,000 of bonus a year), while letting the existing HTB ISA either sit at its current balance or topping it up with smaller monthly contributions to keep both options open. When you actually buy a home, you decide which bonus to claim — usually the LISA wins because of the higher property price cap and the fact you can also invest the LISA in stocks and shares.
Should I Transfer My Help to Buy ISA to a Lifetime ISA?
For most first-time buyers in 2026 the answer is no — keep both. Transferring your Help to Buy ISA balance into a Lifetime ISA does count toward the £4,000 annual LISA limit, so a £3,000 transfer leaves you only £1,000 of fresh LISA contribution room for the year. There is no government bonus paid on transfers from HTB ISA to LISA. The most common optimal strategy is to keep the HTB ISA open with minimal contributions (perhaps £50 a month) so it remains a fallback option, while contributing the maximum £4,000 a year to the LISA to capture the £1,000 government bonus annually. This way you have flexibility to pick whichever bonus is larger when you actually buy.
Frequently Asked Questions
Can I still open a Help to Buy ISA in 2026?+
No. The Help to Buy ISA closed to new applicants on 30 November 2019. You can only contribute to a Help to Buy ISA in 2026 if you opened the account before that date. The Lifetime ISA (LISA) is the modern alternative for first-time buyers and works in many ways better — higher contribution limits, higher property price cap, and bonuses paid monthly rather than at completion.
How much is the maximum Help to Buy ISA bonus?+
The maximum government bonus on a Help to Buy ISA is £3,000, paid as 25% of a £12,000 closing balance. To reach this you need to deposit the full initial £1,200 in your first month, then contribute the maximum £200 every month for about 54 months (4.5 years), plus interest earned. The bonus is paid by the government to your conveyancer at completion, not into the ISA itself.
What is the property price cap for Help to Buy ISA?+
The property price cap for Help to Buy ISA is £250,000 outside London and £450,000 in Greater London. London means any of the 32 London Boroughs plus the City of London. If your purchase price exceeds the cap, you cannot use the HTB ISA bonus on that purchase — though you can still keep the savings and use them for the deposit. The price cap is one of the main reasons most savers prefer the Lifetime ISA, which has a £450,000 cap nationwide.
Can I withdraw money from my Help to Buy ISA without penalty?+
Yes. Unlike the Lifetime ISA, the Help to Buy ISA has no withdrawal penalty. You can take out your money (with interest) at any time for any reason — but if you do not use it for a qualifying first home purchase, you do not get the 25% government bonus. This is one advantage HTB ISAs retain over LISAs, which charge a 25% penalty for non-qualifying withdrawals (effectively taking back the bonus AND a chunk of your own contributions).
Is Help to Buy ISA tax-free?+
Yes. Like all ISAs, interest earned on a Help to Buy ISA is tax-free. The £200 monthly contribution limit counts toward your overall £20,000 ISA allowance for the tax year, so a fully-funded HTB ISA leaves £17,600 of remaining ISA allowance for stocks and shares ISAs, cash ISAs or innovative finance ISAs.
When do I have to use my Help to Buy ISA bonus by?+
You can keep paying into a Help to Buy ISA until 30 November 2029 and you must claim the bonus by 1 December 2030. After 1 December 2030 the scheme will be permanently closed and any unclaimed bonus is lost. If you have not bought a home by then but still have savings in the account, the savings remain yours but the 25% bonus is forfeited.
Should I switch from Help to Buy ISA to Lifetime ISA?+
For most first-time buyers under age 40 the answer is to keep both. The Lifetime ISA has higher contribution limits (£4,000 vs £2,400 a year) and a higher property price cap (£450,000 nationwide vs £250,000 outside London), but the Help to Buy ISA has no withdrawal penalty. The optimal strategy is usually to keep the HTB ISA open with small contributions (so it remains a fallback) and prioritise the LISA for capturing the maximum £1,000 bonus per year. Pick whichever bonus is larger when you actually buy.
Can I use Help to Buy ISA with a shared ownership home?+
Yes, but with conditions. The shared ownership property must still meet the price caps based on the FULL market value of the property, not just the share you are buying. So a property with a full value of £400,000 outside London would not qualify for the HTB ISA bonus, even if you are only buying a 25% share at £100,000. The property must also still be your main residence and the purchase must be with a mortgage.
Sources & Disclaimer
Help to Buy ISA scheme rules: HM Treasury Help to Buy ISA Scheme Rules document. Help to Buy ISA closure: HMRC announcement November 2019. Lifetime ISA rules: HMRC Lifetime ISA Manual. ISA contribution limits: gov.uk ISA pages. London Borough definitions: London Boroughs official list. This article is for educational purposes only and is not personalised financial advice.