Can I still use a Help to Buy ISA to buy a house?

Full answer

The Help to Buy ISA was replaced by the Lifetime ISA for new savers, but existing account holders still have valuable transitional rights that are easy to overlook or lose track of. **The scheme is closed to new savers** No new Help to Buy ISA accounts could be opened after 30 November 2019 -- if you did not have one open by that date, this route is no longer available to you, and the Lifetime ISA (with its own 25% bonus, but different rules and a higher maximum property price cap of £450,000 UK-wide) is the equivalent product now on offer for first-time buyer savings. **Existing account holders can keep contributing** If you already had a Help to Buy ISA open before the cut-off, you can continue paying into it (up to £200 a month, plus an initial lump sum in the first month of up to £1,200 if you did not already use it) right up until November 2029, and still earn the 25% government bonus on your total savings when you use it towards a first home. **Bonus claim deadline** The government bonus itself must be claimed by 1 December 2030 -- your solicitor or conveyancer applies for the bonus on your behalf during the home-buying process, so you need to have both the ISA funds and the bonus claim in place before this final cut-off, even if the property purchase completes shortly before the deadline. **How the bonus works** The government adds 25% to your total Help to Buy ISA savings when you use the account towards buying your first home, up to a maximum bonus of £3,000 (on savings of £12,000), and a minimum savings balance of £1,600 is required before you qualify for any bonus (giving a minimum bonus of £400). **Property price cap** The property you buy must cost no more than £250,000 (or £450,000 in London) to use the Help to Buy ISA bonus -- this cap has not changed since the scheme design and has become more restrictive over time as average house prices have risen, particularly outside London. **Can you combine it with a Lifetime ISA?** You cannot use the bonus from both a Help to Buy ISA and a Lifetime ISA on the same home purchase -- if you have both types of account, you must choose which one's bonus to claim (though you can transfer Help to Buy ISA savings into a Lifetime ISA, subject to the Lifetime ISA's own £4,000 a year contribution limit, if switching makes more sense for your situation, particularly given the higher LISA property price cap). **Worked example** Someone who opened a Help to Buy ISA in 2018 has saved £10,000 by 2027 and plans to buy their first home for £220,000. They qualify for a 25% bonus on their £10,000 balance, worth £2,500, claimed by their solicitor as part of the purchase completion, giving them £12,500 total to put towards their deposit and purchase costs, provided the purchase and bonus claim both occur before the 2029/2030 deadlines. **Practical tip** If you still have an old Help to Buy ISA, check your current balance against the £12,000 cap for maximum bonus eligibility, confirm your solicitor knows to apply for the bonus as part of your purchase, and diarise the November 2029 saving deadline and 1 December 2030 bonus claim deadline well in advance so you do not miss out.

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