Help to Buy ISA vs Lifetime ISA: which should you use?
If you still have a Help to Buy ISA, should you switch to a LISA? The bonuses, limits and traps compared - and the answer depends on one number: your house price.
3 min read · Updated 7 August 2026 · By Dwellmark Editorial
If you opened a Help to Buy ISA before they closed in November 2019, you can keep saving into it - but the Lifetime ISA usually pays more. The catch: they have different house-price limits, and moving your money can cost you. Here’s how to decide, with the one number that matters: your target house price.
The comparison
| Help to Buy ISA | Lifetime ISA | |
|---|---|---|
| Max bonus | £3,000 (25% of £12,000 saved) | Up to £1,000/year - £33,000 over a lifetime |
| Max house price | £250,000 (£450,000 London) | £450,000 everywhere |
| Min ownership | None | Must be open 12 months before use |
| Withdrawal penalty | None (you just lose the bonus) | 25% charge on non-home withdrawals |
| Can use for retirement | No | Yes (from 60) |
| New accounts | Closed - existing savers only | Open to 18–39 year-olds today |
The decision rule
If your target home costs under £250,000 (£450,000 in London) and you only want the bonus for a deposit, the Help to Buy ISA has one huge advantage: no withdrawal penalty. You can take the money out any time and just lose the bonus - no charge on your own savings.
If your target is between £250,000 and £450,000 outside London - or you want the bigger bonus and the retirement option - the Lifetime ISA wins, provided you’re happy to lock the money away until you buy (the 25% charge is the price of flexibility).
The smart play
- If you qualify for both, the best move for most people is the LISA - the £1,000/year bonus beats the H2B ISA’s one-off £3,000 within three years
- Keep the H2B ISA only if your house price is near the £250k limit and you value penalty-free access
- Don’t withdraw the H2B ISA early - the bonus is paid at completion, so the money needs to stay in until then
- Use the H2B ISA bonus last: it pays out at completion, whereas a LISA bonus is credited as you save
Both schemes pay the same 25% on savings; the difference is scale and flexibility. The LISA wins on numbers, the H2B ISA wins on freedom - choose based on how sure you are about buying, and how much the home will cost.
Source: GOV.UK - Help to Buy ISA — Bonus rules checked August 2026
Source: GOV.UK - Lifetime ISA — Rules checked August 2026
Lifetime ISA explainedThe full LISA guide: traps, timings and the 12-month rule.How much deposit do you need?Where ISA bonuses fit in your deposit plan.
Sources
- GOV.UK - Help to Buy ISA - Bonus rules checked August 2026
- GOV.UK - Lifetime ISA - Rules checked August 2026
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