Help to Buy ISA: how does it work and can you still use one?

Disclaimer: This article provides general information only and is not intended to constitute legal, financial, mortgage or tax advice. Eligibility depends on your individual circumstances and the scheme rules in force at the time of your purchase. You should check the latest government guidance and speak to your ISA provider, mortgage advisor and conveyancer before making any decisions. Information accurate as of November 2026.

If you're saving for your first home, you might have heard of a Help to Buy ISA. It was a government-backed savings account designed to help first-time buyers build up a deposit, with a little extra help from the government along the way. 

The scheme closed to new applicants on 30 November 2019, so you can't open a new Help to Buy ISA today. However, if you already have one, you can continue to save into the account and receive the government bonus.  

That extra money could make a real difference when you're trying to get onto the property ladder, particularly when you're already juggling the cost of a deposit, legal fees and everything else that comes with moving home. 

A Help to Buy ISA works like a regular cash savings account, but with a government bonus on top when you use your savings to buy an eligible first home. 

With a Help to Buy ISA, you can save up to £200 each month. And for every £200 you save, the government adds another £50, giving your savings a 25% boost when you're ready to buy your first home. 

You'll also earn interest on the money in your account, depending on the interest rate offered by your provider. 

There are a few limits to be aware of: 

• Maximum monthly saving: £200 
• Minimum savings to qualify for a bonus: £1,600 
• Maximum eligible savings: £12,000 
• Minimum government bonus: £400 
• Maximum government bonus: £3,000 

Here's how the bonus could add up towards your first home:

Your savings	Government bonus	Total
£1,600	£400	£2,000
£4,000	£1,000	£5,000
£8,000	£2,000	£10,000
£12,000	£3,000	£15,000

 

Although you can no longer open a new account, existing Help to Buy ISA holders can still claim the bonus if they meet the scheme's requirements. 

To qualify, you must: 

• Be a first-time buyer, meaning you have never owned a property anywhere in the world. 
• Be buying a home that you intend to live in, rather than a property to rent out. 
• Be buying a property worth no more than £250,000 outside London, or £450,000 in London. 
• Use the bonus towards the purchase price of your home. 

You must also meet the scheme's mortgage and purchase requirements. The bonus isn't available for a buy-to-let property or if you're a cash buyer. 

It's worth checking the full eligibility rules before you commit to a purchase, especially if you're buying with someone else or looking at a property close to the price limit. 

This is one of the most important things to understand if you're planning to use your Help to Buy ISA to buy a home.

You don't receive the bonus as soon as you decide to buy, and you can't claim it yourself directly from the government. Your conveyancer applies for it on your behalf as part of the purchase process.

Here's how it works:

1. Your offer is accepted. Once you've found a property and your offer has been accepted, you'll start working with your conveyancer to progress the purchase.
2. You close your Help to Buy ISA. When you're ready to claim the bonus, you'll need to contact your ISA provider and follow its process for closing the account and obtaining the required closing documents. Don't simply withdraw the money without checking what your provider requires.
3. Your conveyancer applies for the bonus. You'll provide the necessary documents, and your conveyancer will submit the application.
4. The bonus is added to your purchase funds. Once approved, the government bonus contributes towards the purchase price when you complete your purchase.

The timing of the bonus is important here. It can only be claimed after exchange of contracts and before completion, so it can't be used to pay the deposit required at exchange, legal fees, surveys or other costs of the home purchase process.

This means you'll need to make sure you have enough money available to cover the exchange deposit without relying on the government bonus arriving first.

It's a good idea to tell your conveyancer early on that you're using a Help to Buy ISA, so that they can explain the claim process and the documents they will need.

In the Autumn Budget on 28 October 2026, the government announced plans to introduce a new First Time Buyer ISA from April 2029. The bonus is intended to be paid when buyers exchange contracts, with buyers then having 90 days to complete their purchase, helping to make the money available earlier in the buying process. This new First Time Buyer ISA is planned to be offered in place of the Lifetime ISA (LISA) and Help to Buy ISA schemes. 

The proposed scheme will retain the 25% government bonus, allowing eligible first-time buyers to receive a bonus on savings of up to £4,000 a year. The property price cap will also remain at £450,000.  

Existing Help to Buy ISA holders will be able to continue using their account under the current deadlines. They will also have the option of transferring their full Help to Buy ISA balance into a First Time Buyer ISA between 6 April 2029 and 1 December 2030.