Lifetime ISA vs Help to Buy ISA in 2026: What Existing Savers Should Know
Help to Buy ISAs closed to new savers in 2019, but many people still hold one. How it now compares to a Lifetime ISA for anyone still deciding where to keep saving towards a first home.
Two schemes, one now closed to new entrants
Help to Buy ISAs were designed for first-time buyers and offered a 25% government bonus on savings, but the scheme closed to new applicants on 30 November 2019. Existing holders can keep saving into their account (subject to the monthly contribution limits) and still claim the bonus when they buy, but the product itself is no longer available to open — the Lifetime ISA has effectively replaced it for anyone starting to save now.
Lifetime ISA (LISA) Calculator
Model Lifetime ISA contributions with the 25% government bonus. First home purchase mode and retirement mode.
Model Lifetime ISA growth with the bonusHelp to Buy ISA Calculator (Legacy)
For existing Help to Buy ISA holders: calculate your 25% government bonus and total deposit at first-home purchase.
Check an existing Help to Buy ISA balanceSide-by-side
| Feature | Help to Buy ISA (existing holders only) | Lifetime ISA |
|---|---|---|
| Open to new savers | No — closed since Nov 2019 | Yes, ages 18-39 |
| Government bonus | 25% of final balance, capped at £3,000 (on £12,000 saved) | 25% on contributions up to £4,000/year (max £1,000/year) |
| Usable for | First home purchase only | First home (up to £450,000) or retirement from 60 |
| Early/other withdrawal | Bonus simply isn't paid | 25% government withdrawal charge applies |
Why the Lifetime ISA usually wins for ongoing saving
Because the Lifetime ISA bonus is added annually on contributions (up to £4,000 a year), rather than once at the point of the Help to Buy ISA's final balance, someone saving steadily over several years typically accumulates a larger total bonus in a Lifetime ISA than the Help to Buy ISA's capped £3,000 maximum. This is the main reason existing Help to Buy ISA holders who are still years away from buying often choose to transfer their balance into a Lifetime ISA.
What existing Help to Buy ISA holders should check
- The house price cap on the specific Help to Buy ISA terms, which can be lower than the Lifetime ISA's £450,000 limit.
- Whether transferring the balance into a Lifetime ISA makes sense — this is generally allowed and preserves the tax-free status, but check the receiving provider's process.
- That only one bonus can be claimed on a single property purchase, so decide which account will actually be used before completion.
Sources
- gov.uk: Help to Buy ISA
- gov.uk: Lifetime ISA
Frequently asked questions
Can I still open a new Help to Buy ISA in 2026?
No. Help to Buy ISAs closed to new applicants on 30 November 2019. Existing account holders can keep saving into one they already opened, but nobody can open a new one now — anyone starting from scratch today would use a Lifetime ISA instead.
Can I hold both a Lifetime ISA and a Help to Buy ISA?
You can hold both, but you can only use the government bonus from one of them towards buying your first home — HM Revenue & Customs rules mean you cannot claim both bonuses on the same property purchase, so most people transfer any Help to Buy ISA balance into a Lifetime ISA before completion, or choose to use only one bonus.
Which bonus is bigger?
The Lifetime ISA bonus (25% on contributions up to £4,000 a year, so up to £1,000 a year) is generally more generous over time than the Help to Buy ISA bonus (25% of the final balance, capped at a £3,000 maximum bonus on £12,000 saved), especially for anyone saving steadily over several years.
Try the calculators
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