Comparison · 2025/26
LISA vs Help to Buy ISA — Which Wins?
Both offer 25% government bonus for first-time buyers, but they\'re VERY different. HTB ISA closed to new accounts in Nov 2019 — only LISA is available now for new savers. Existing HTB holders face critical choices.
Side-by-Side
| Feature | LISA | Help to Buy ISA |
|---|---|---|
| Open to new savers? | YES | NO (since Nov 2019) |
| Max annual contribution | £4,000 | £2,400 (£200/month) |
| Max government bonus | £1,000/yr (until age 50) | £3,000 lifetime max |
| Age limit to open | 18-39 | 16+ (closed) |
| Max property price | £450,000 anywhere UK | £250,000 (£450,000 London) |
| Bonus paid at | Monthly into account | Completion (legal date) |
| Can be used for | First home OR retirement (60+) | First home only |
| Cash or Stocks & Shares? | Both | Cash only |
| Penalty for other withdrawal | 25% (effectively 6.25% of your money + lost bonus) | None (but lose unpaid bonus) |
When LISA Wins for First-Time Buyers
- Bigger annual contribution (£4k vs £2.4k) = bigger bonus (£1k vs £600/yr)
- Higher property cap (£450k UK-wide vs £250k outside London)
- Stocks & Shares LISA available for long-term growth
- Can be used for retirement if you don\'t buy
- Bonus paid into account (compounds over time)
Keep HTB ISA If You Have One?
If you have an existing Help to Buy ISA:
- Approaching home purchase soon? Keep HTB. The bonus is reliable, no penalty if you withdraw for other reasons.
- Years to go before buying? Consider opening a LISA in parallel (you can hold both). Pay £200/month to HTB to maintain bonus + £4k/yr to LISA.
- Might buy a property over £250k outside London? Must use LISA for that — HTB doesn\'t cover it.
- HTB bonus deadline: Must claim by 1 December 2030. After that, the scheme fully closes.
Common LISA Mistakes
- Opening at 40+: Cannot. Must open between 18-39.
- Not using bonus before 50: Bonus stops at age 50, account becomes a normal Cash/S&S ISA.
- Buying property over £450k: 25% penalty applies. Plan property purchases carefully.
- Withdrawing for other reasons: 25% penalty effectively means losing the bonus PLUS some of your own money.
- Putting all £20,000 ISA allowance into LISA: No — LISA limit is £4,000/yr within the £20,000 overall ISA limit.
Calculators & Guides
Calculators for this topic
ISA Calculator
Project ISA savings growth over time with the UK £20,000 annual allowance.
Compound Interest Calculator
Calculate compound interest on savings and investments over any time period.
Mortgage Calculator
Calculate monthly mortgage payments, total interest, and full repayment cost.
Pension Calculator
Estimate your pension pot at retirement and projected annual income.
Disclaimer: LISA rules are complex. For combined LISA + HTB strategy, get advice from MoneyHelper.org.uk (free).