Help to Buy ISA: 2029 Bonus Deadline and How to Use Remaining Funds

Over four million Help to Buy ISAs were opened between 2015 and 2019, helping a generation of first-time buyers build a deposit with the incentive of a government bonus worth up to £3,000. The accounts are now closed to new savers, but if you still have one, there is meaningful money at stake before the 2029 deposit deadline and 2030 bonus claim deadline. This guide covers everything you need to know to make the most of your remaining H2B ISA — whether you're actively saving for a home, reconsidering your options, or wondering whether to transfer to a Lifetime ISA.

Help to Buy ISA: The Key Dates

You do not need to have completed a property purchase by 30 November 2029 — only to have deposited your savings by then. You have until 1 December 2030 to actually complete on a qualifying property and have your conveyancer claim the bonus.

How the H2B ISA Bonus Works

The government bonus is 25% of your total H2B ISA savings, subject to minimum and maximum thresholds:

The maximum deposit is £200/month (with an initial one-off deposit of up to £1,200 in the first month). To reach the maximum £12,000 qualifying for the £3,000 bonus from the 2026 starting point — at £200/month — you would need at least 30 more months, which is achievable before the November 2029 deadline.

The Bonus Is Not In Your Account

One common misconception: the government bonus is not added to your account balance. It exists only as a potential claim at the point of property completion. Your conveyancer requests the bonus from the scheme administrator (currently Barclays, acting as scheme administrator), and it is applied toward your purchase — you never "see" it in your ISA.

This also means: if you withdraw your H2B ISA savings without buying a qualifying property, you receive only your contributions and interest — the bonus is lost entirely.

Qualifying Property Rules

To claim the H2B ISA bonus, the property must meet these criteria:

Important: The H2B ISA property price cap is £250,000 (£450,000 in London) — significantly lower than the Lifetime ISA cap of £450,000 nationwide. This cap has made the H2B ISA increasingly restrictive in higher-price regions. If the property you're buying costs more than £250,000 outside London, you cannot use your H2B ISA bonus — though you can still withdraw your savings penalty-free.

H2B ISA vs LISA: Key Comparison

The Lifetime ISA is more generous in terms of annual bonus potential (£1,000/year vs £3,000 lifetime), has a higher property price cap, and can also be used for retirement. However, it carries a severe withdrawal penalty — whereas H2B ISA savings can be withdrawn at any time without penalty (just without the bonus).

Can I Use Both H2B ISA and LISA on the Same Purchase?

No. You can only use the government bonus from one scheme per property purchase. You must choose either the H2B ISA bonus or the Lifetime ISA bonus — not both. You can hold both accounts simultaneously and contribute to both, but at completion you elect which bonus to use.

If your H2B ISA balance has a higher bonus than your LISA (unlikely unless your LISA is very new), you might choose the H2B bonus. In practice, for most savers who have been contributing to a LISA since opening, the LISA will accumulate more total bonus over time.

Combining H2B ISA with SDLT First-Time Buyer Relief

First-time buyers benefit from Stamp Duty Land Tax (SDLT) relief in England and Northern Ireland:

Note: SDLT FTB relief is a separate relief from the H2B ISA bonus — you can use both simultaneously on the same purchase, as long as the property meets the respective eligibility criteria.

For a first-time buyer purchasing a £280,000 property:

• H2B ISA bonus (on £12,000 savings): £3,000
• SDLT due: £0 (below £300,000 threshold)
• Combined saving vs. non-FTB, non-H2B buyer: potentially thousands of pounds

Transferring Your H2B ISA to a Lifetime ISA

If you're under 40 and not planning to buy a home before 2029 (or are buying above the £250,000 price cap), transferring your H2B ISA to a LISA may be worth considering.

How the Transfer Works

1. Contact your chosen LISA provider and request a transfer
2. The H2B ISA funds are transferred to your LISA as a subscription
3. The transferred amount uses your annual LISA allowance (£4,000)
4. Once in the LISA, the 25% LISA bonus applies — a better outcome than losing the H2B ISA bonus entirely

The Annual Allowance Constraint

If your H2B ISA holds more than £4,000, you cannot transfer all of it in one tax year. You would need to transfer in stages:

Note: LISA contributions must also stop at age 50, so transfer before this if applicable.

Is Transfer Always Worth It?

The transfer makes financial sense if:

• You are unlikely to buy within the H2B ISA rules (property over £250k outside London, or not buying before 2030)
• You are under 40 and have LISA allowance available
• You can leave the money until age 60 for retirement (or use for a qualifying property)

It does NOT make sense if:

• You are planning to buy within the H2B ISA rules in the near future (you'd be better using the H2B bonus, not re-contributing and waiting for LISA bonuses to build)
• You are over 40 and cannot open a LISA

How to Claim the H2B ISA Bonus at Completion

The bonus claim process is handled by your conveyancer (solicitor):

1. You instruct your conveyancer that you have an H2B ISA
2. Shortly before completion, your conveyancer requests a Closing Letter from your H2B ISA provider
3. The provider issues a Closing Letter confirming your balance and bonus entitlement
4. Your conveyancer submits this to the H2B ISA scheme administrator along with the property details
5. The bonus is transferred to your conveyancer to be applied to the purchase

Important: The Closing Letter triggers the account closure. Do not request it until you are confident the purchase will proceed — if the purchase falls through after the letter is issued, the process must start again with a new account.

Current Interest Rates on H2B ISAs

Since the accounts are closed to new savers, providers have gradually reduced the competitiveness of H2B ISA interest rates. Typical rates in mid-2026 are modest:

• Barclays H2B ISA: ~2.0–2.5% AER
• Halifax H2B ISA: ~2.0% AER
• Nationwide H2B ISA: ~2.5% AER

These rates are below the best easy-access Cash ISA rates (4–4.8%). However, because the account holds your H2B ISA savings specifically for the bonus claim, the practical question is less about the interest rate and more about whether you are planning to use the account for a qualifying purchase.

If your H2B ISA has a meaningful balance and you are saving actively, maintaining it makes sense. If you have no realistic prospect of buying a qualifying property before 2030, consider transferring to a LISA (if under 40) or withdrawing the savings and redeploying them to higher-rate accounts while planning your next steps.

Summary: What to Do With Your H2B ISA in 2026

The Help to Buy ISA bonus of up to £3,000 is valuable — but only if you complete a qualifying purchase before 1 December 2030. If that looks unlikely, acting now to transfer or redeploy the savings gives you the best chance of making the most of what you've saved.