Help to Buy ISAs: What You Need to Know in 2025
Help to Buy ISAs were introduced to support first-time buyers saving for a deposit. Although you can no longer open a new Help to Buy ISA, if you already have one, it remains active—and understanding how to use it effectively could earn you thousands in free government bonuses.
This guide explains everything you need to know about Help to Buy ISAs in the UK, including how they work, how to claim the bonus, and how they compare to other options like the Lifetime ISA.
What Is a Help to Buy ISA?
A Help to Buy ISA is a government-backed savings account designed to help first-time buyers save for a property deposit. You save money into the ISA, and the government adds a 25% bonus—up to a maximum of £3,000.
Although new applications closed on 30 November 2019, existing accounts remain valid and can be contributed to until 30 November 2029. You must claim the bonus by 1 December 2030.
How Does the Help to Buy ISA Work?
Here’s how the Help to Buy ISA works in practice:
| Feature | Details |
|---|---|
| Opening deadline | Closed to new applicants since 30 Nov 2019 |
| Initial deposit | Up to £1,200 in your first month |
| Monthly savings limit | Up to £200 thereafter |
| Government bonus | 25% of the amount saved (minimum £1,600 saved = £400 bonus) |
| Maximum bonus | £3,000 (on £12,000 of savings) |
| Deadline for contributions | 30 Nov 2029 |
| Deadline to claim bonus | 1 Dec 2030 |
| Use | For first home worth up to £250,000 (£450,000 in London) |
You must be a first-time buyer and use the funds for a residential mortgage.
Who Can Still Benefit from a Help to Buy ISA?
If you opened a Help to Buy ISA before the 2019 deadline and are:
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Saving regularly toward your first property
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Planning to buy before 2030
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Looking for a government-supported bonus
Then you’re still eligible for the full benefits, provided you meet the usage rules.
How Do You Claim the 25% Government Bonus?
You don’t claim the bonus yourself—your solicitor or conveyancer does this during the home-buying process.
Steps include:
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Tell your solicitor you have a Help to Buy ISA
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Close your ISA and get a closing statement from the provider
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Give this to your solicitor
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The solicitor will apply for the government bonus
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The bonus is added to your house deposit (not usable for the exchange deposit)
Note: You cannot use the bonus to pay for legal fees, surveys, or other purchase-related expenses.
Example: How Much Could You Get?
| Saved Amount | Government Bonus | Total Towards Your First Home |
|---|---|---|
| £1,600 | £400 | £2,000 |
| £6,000 | £1,500 | £7,500 |
| £12,000 | £3,000 | £15,000 |
Even small contributions over time can lead to a substantial bonus—especially useful in areas with lower property prices outside London.
UK Banks That Offered Help to Buy ISAs
Though no longer available to new savers, these banks previously provided Help to Buy ISAs and still manage existing accounts:
| Bank | Interest Rates (may vary) | Notable Features |
|---|---|---|
| Barclays | Around 2.55% (variable) | Online and branch access |
| Halifax | Around 1.75%–2.50% (variable) | App-based management |
| Nationwide | 2.25% AER (was available) | High interest for existing ISA customers |
| Santander | ~1.50% AER (variable) | Easy transfers to other Santander ISAs |
| NatWest | Typically ~1.25% | Available for customers with a mortgage |
Check with your bank directly for current rates and to make sure your account remains active.
Can You Transfer to a Lifetime ISA Instead?
If you haven’t saved much yet in your Help to Buy ISA—or want to save more—a Lifetime ISA (LISA) may be a better option. You can transfer funds from your Help to Buy ISA to a LISA, but you can’t get the bonus from both on the same property.
| Feature | Help to Buy ISA | Lifetime ISA |
|---|---|---|
| Max bonus | £3,000 | Up to £33,000 (over time) |
| Yearly savings limit | £2,400 | £4,000 |
| Max property value | £250k (£450k in London) | £450k nationwide |
| Withdrawal rules | Only for house purchase | Penalty if withdrawn early or misused |
| Age limit to open | Opened before 2019 | 18–39 years old |
Note: The LISA offers more flexibility and higher bonuses, but your money is locked in unless you use it for your first home or after age 60.
What Happens If You Don’t Use It for a House?
If you decide not to buy a home, you won’t receive the 25% bonus. However:
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You can withdraw the savings without penalty (minus the bonus)
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You can transfer the funds to a standard Cash ISA or Stocks & Shares ISA
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You keep any interest earned on the account
The Help to Buy ISA becomes a regular cash savings account after the deadline passes or if it’s not used for a qualifying purchase.
Mistakes to Avoid with a Help to Buy ISA
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Assuming you can use the bonus for your exchange deposit – You can’t
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Waiting too long to use it – You must claim by 1 December 2030
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Not informing your solicitor – They must apply for the bonus
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Exceeding the property value cap – You won’t get the bonus if the property is over £250,000 (£450,000 in London)
Final Thoughts: Still Worth It for Eligible Buyers
If you already have a Help to Buy ISA open, it’s still a valuable tool in 2025. Saving regularly and planning to use the bonus for a qualifying purchase can help reduce the financial burden of buying your first home.
However, compare it with the Lifetime ISA to decide which product suits your situation best—especially if you’re early in your savings journey or buying in London where higher property caps apply.
For official guidance and eligibility updates, visit the GOV.UK Help to Buy ISA information page.