Help to Buy ISA vs Lifetime ISA: Which Bonus Is Bigger in 2026/27?
A direct 2026/27 comparison of the closed Help to Buy ISA against the Lifetime ISA for existing savers deciding where to keep saving for a first home.
Head-to-Head Comparison
| Feature | Help to Buy ISA (closed to new savers) | Lifetime ISA |
|---|---|---|
| Open to new savers? | No — closed 30 Nov 2019 | Yes, ages 18-39 |
| Annual contribution | ~£2,400/year (£200/month) | £4,000/year |
| First-month top-up | £1,200 extra allowed | None — standard limit applies |
| Government bonus | 25%, paid at completion (min £1,600 saved, max £3,000 bonus) | 25%, added as you save |
| Property price cap | £250,000 (£450,000 in London) | £450,000 nationwide |
| Usable for non-house purposes? | No — bonus only pays out on completion | Yes, penalty-free from age 60 |
| Counts within £20,000 ISA allowance? | Yes | Yes |
Why the Lifetime ISA Usually Wins for Existing Savers
The Lifetime ISA's higher annual limit (£4,000 vs an effective ~£2,400/year) allows faster bonus accumulation, and its flat £450,000 UK-wide property cap removes the regional penalty that Help to Buy ISA savers face outside London.
Worked Example: 3 Years of Saving
| Scenario | Total saved (own money) | Government bonus | Total |
|---|---|---|---|
| Help to Buy ISA (£200/month, 3 years) | £7,200 | £1,800 | £9,000 |
| Lifetime ISA (£4,000/year, 3 years) | £12,000 | £3,000 | £15,000 |
The Lifetime ISA's higher contribution ceiling produces a larger bonus in absolute terms for savers who can afford to contribute more, though both remain subject to the same 25% bonus rate.
When the Help to Buy ISA Might Still Suit
For savers already very close to completing a purchase, with a Help to Buy ISA balance close to maturity and a property price comfortably under the regional cap, there may be little practical benefit in switching accounts shortly before buying — the transfer and account-opening process itself takes time that may not be worth it right before completion.
Help to Buy ISA Calculator (Legacy)
For existing Help to Buy ISA holders: calculate your 25% government bonus and total deposit at first-home purchase.
Open Help to Buy ISA calculatorLifetime ISA (LISA) Calculator
Model Lifetime ISA contributions with the 25% government bonus. First home purchase mode and retirement mode.
Open Lifetime ISA calculatorFrequently asked questions
Can I still open a new Help to Buy ISA in 2026/27?
No — Help to Buy ISAs closed to new applicants on 30 November 2019. Existing account holders can continue contributing to their existing account, but nobody can open a brand new one.
What's the maximum monthly contribution to a Help to Buy ISA?
£200 a month, plus an additional one-off £1,200 in the first month only — giving a maximum first-year contribution of £3,400, and £2,400 a year in every subsequent year.
What's the maximum annual contribution to a Lifetime ISA?
£4,000 a year — considerably more than the Help to Buy ISA's effective £2,400/year ongoing rate, allowing faster bonus accumulation for those who can afford to save more.
Do both accounts offer the same 25% government bonus?
Yes, both pay a 25% bonus, but it's applied differently: the Help to Buy ISA bonus is paid only at completion of a house purchase (minimum £1,600 saved to qualify for any bonus, maximum £3,000 bonus), while the Lifetime ISA bonus is added monthly or annually as you save, regardless of when (or whether) you buy.
What are the property price caps for each account?
Help to Buy ISA: £250,000 outside London, £450,000 in London. Lifetime ISA: £450,000 nationwide, with no lower cap for properties outside London — a meaningful advantage for LISA savers buying outside London at prices above £250,000.
Can I hold both a Help to Buy ISA and a Lifetime ISA?
Yes, existing Help to Buy ISA holders can keep contributing to it, but only the bonus from one account can be used towards a single home purchase — you can't combine both bonuses on the same completion. Transferring Help to Buy ISA savings into a Lifetime ISA is generally allowed and doesn't affect the LISA's own annual contribution limit for the year of transfer in many cases, but check current provider and HMRC rules.
Which account is better for someone who might not buy a home?
The Lifetime ISA, since its bonus and savings remain accessible penalty-free from age 60 for any purpose, functioning as a retirement top-up. The Help to Buy ISA bonus is only ever paid out on completion of a qualifying home purchase — if you never buy, you keep your own contributions and any interest, but never receive the 25% bonus.
Is switching from a Help to Buy ISA to a Lifetime ISA usually worth it?
For most existing Help to Buy ISA savers still some years from buying, yes — the higher £4,000 annual limit, higher nationwide £450,000 property cap, and the option to use the money penalty-free from age 60 if plans change, generally outweigh the Help to Buy ISA's slightly simpler bonus-at-completion structure. Compare your specific numbers before switching, since transfer rules and timing can affect the outcome.
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