Help to Buy ISA vs LISA Guide

Help to Buy ISA Rules

The Help to Buy ISA closed to NEW applicants on 30 November 2019. Existing accounts: can continue saving until 30 November 2029, must claim bonus by 1 December 2030. How it works: government adds 25% bonus on savings — minimum £1,600 saved (for £400 bonus), maximum £12,000 saved (for £3,000 bonus). Monthly contribution limit: £200/month (£2,400/year). The bonus is ONLY paid on property completion — NOT available for exchange deposit. Property price limits: outside London £250,000. London £450,00

LISA Rules (for comparison)

LISA open to new applicants aged 18-39. Maximum £4,000/year contribution. 25% bonus paid monthly (up to £1,000/year). Property limit: £450,000 anywhere in the UK. LISA funds CAN be used for the exchange deposit (unlike HTB ISA). Must have been open 12 months before use. If you have both accounts: you can save in both simultaneously for the exchange deposit. At completion, use your LISA funds. The HTB ISA bonus is paid separately at completion. Combined bonuses possible: save £200/month into HTB

When HTB ISA Is Better

HTB ISA gives more bonus when: your total savings are under approximately £12,000. The London property you want is under £450,000 (LISA also covers this). You have a large existing HTB ISA balance — the 25% bonus on up to £12,000 = up to £3,000. HTB ISA advantage: no withdrawal penalty for non-property use (unlike LISA's 25% charge). If your plans change and you decide not to buy, you can withdraw HTB ISA savings without penalty — very different from LISA which charges 25% on the whole amount if

Combining Both Accounts

The most powerful strategy for existing HTB ISA holders: keep contributing the maximum £200/month to the HTB ISA. ALSO open a LISA (if under 40) and contribute up to £333/month (to match the £4,000/year cap). At purchase: use HTB ISA savings for the exchange deposit (can use the full balance). At completion: solicitor claims the HTB ISA bonus (up to £3,000). LISA funds can be used for completion balance. LISA bonus also received. Combined potential bonuses: £3,000 (HTB) + up to £32,000 over life

Not financial advice. This calculator is for general information and education only. Figures are estimates and may not reflect your circumstances. For decisions, consult the FCA register and a qualified financial adviser. See our editorial standards.

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