Help to Buy ISA: the legacy scheme explained for existing savers
Closed to new accounts since 2019 - but if you still have one, the 25% bonus is free money you can’t afford to lose. Rules, limits and how to claim at completion.
3 min read · Updated 7 August 2026 · By Dwellmark Editorial
The Help to Buy ISA closed to new accounts in November 2019 - but if you opened one before then, it still works, and the 25% government bonus (up to £3,000) is free money you lose if you close it. Around a million people still hold one. If that’s you, here’s how to use it properly.
How it works
- Save up to £200 a month (plus an initial £1,000 lump sum) - total maximum £12,000
- The government adds 25% - up to £3,000 - when you buy
- The bonus is paid at completion, not as you save
- The home must cost £250,000 or less (£450,000 in London)
- You must be a first-time buyer (both buyers, for joint purchases)
- You can only use it for a home you’ll live in - no buy-to-let
How the bonus is claimed
The bonus is not paid into your savings - your solicitor claims it from the government as part of the purchase and it goes towards your deposit or completion costs. Tell your conveyancer at the start (not the week before completion) that you’re using a Help to Buy ISA. They’ll apply with the official form, usually up to a month before completion.
The rules that catch people
- The £250,000 cap outside London - the single most common reason claims fail. If the price creeps over, you lose the bonus entirely (you can’t claim it on part of the price)
- You must have opened the account before 30 November 2019 - no new accounts, and you can’t open one now to chase the bonus
- Withdrawing money closes the bonus for that year - money in is fine, money out is not; keep the balance above £1,200 until completion (the minimum for the claim)
- It’s first-time-buyer-only - if you’ve owned a home before, even abroad, you don’t qualify
H2B ISA or LISA?
| Help to Buy ISA | Lifetime ISA | |
|---|---|---|
| Max bonus | £3,000 (one-off) | £1,000/year (up to £33,000) |
| Price limit | £250,000 (£450k London) | £450,000 everywhere |
| Monthly max | £200 | £333 (annual £4,000) |
| Withdrawal penalty | None (lose bonus only) | 25% charge |
| Still available | No (closed 2019) | Yes |
If your target home is under £250,000 outside London, the H2B ISA’s lack of a withdrawal penalty is a real advantage. If it’s pricier - or you want a bigger bonus - the Lifetime ISA is the better vehicle (see our dedicated comparison). Just remember the LISA’s 12-month rule and never close the H2B ISA until you’ve decided.
Source: GOV.UK - Help to Buy ISA — Rules and claim process checked August 2026
Help to Buy ISA vs Lifetime ISAWhich scheme should you actually use?Lifetime ISA explainedThe modern alternative - bigger bonus, stricter rules.
Sources
- GOV.UK - Help to Buy ISA - Rules and claim process checked August 2026
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