Help to Buy ISA Rules: Bonus, Deadline and Alternatives
The Help to Buy ISA is closed to new savers, but existing account holders can still claim a government bonus if they meet the rules.
Key points
- New Help to Buy ISA accounts closed on 30 November 2019.
- Existing savers can claim the government bonus until 1 December 2030.
- The bonus is claimed through your solicitor or conveyancer, not paid to you directly.
Can you still use a Help to Buy ISA?
You cannot open a new Help to Buy ISA anymore. The scheme closed to new applicants on 30 November 2019. If you opened one before then, you can still save into it and may still be able to claim the government bonus.
The bonus is worth 25% of eligible savings. For every £200 saved, the government can add £50. The maximum bonus is £3,000, based on £12,000 of savings.
| Maximum bonus | £3,000 |
|---|---|
| Minimum savings for a bonus | £1,600 |
| Property price cap | £250,000, or £450,000 in London |
| Bonus claim deadline | 1 December 2030 |
The timing trap buyers still miss
The Help to Buy ISA bonus is claimed by your solicitor or conveyancer near completion. It is not paid into your bank account before exchange. That matters because the bonus usually cannot be used as the exchange deposit.
If your deposit is tight, speak to your solicitor and mortgage adviser before reserving a home. Ask them to confirm how the bonus will be requested, when it will arrive, and how it appears on your completion statement.
Help to Buy ISA vs Lifetime ISA
The Lifetime ISA is now the main government-backed savings product many first-time buyers consider. It also offers a 25% bonus, but the rules are different.
- A Lifetime ISA can be used for a first home costing £450,000 or less.
- You can save up to £4,000 per tax year into a Lifetime ISA.
- If you have both products, you can only use one government bonus for the purchase.
- Lifetime ISA withdrawals outside the rules normally face a 25% withdrawal charge.
What if the ISA bonus is not enough?
If the ISA bonus does not close the affordability gap, look at shared ownership, First Homes, Deposit Unlock and developer incentives. These can help, but each has trade-offs around resale, monthly costs, eligibility or mortgage availability.
The safest next step is to compare the full monthly cost rather than only the deposit. Add mortgage payments, service charges, estate charges, rent on unsold shares and any expected rate changes.
Checklist before you reserve a new build
- Tell your solicitor you plan to use a Help to Buy ISA.
- Check the purchase price cap before paying a reservation fee.
- Confirm your exchange deposit is available without the ISA bonus.
- Ask whether any developer incentive affects your mortgage offer.
- Keep your final ISA statement and closure documents.
Sources and further reading
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