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Saturday, 30 May 2026

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Help to Buy ISA vs Lifetime ISA: Which Is Better?

Help to Buy ISAs closed to new applicants in 2019, so new savers can only open a Lifetime ISA. If you still hold a Help to Buy ISA, the LISA usually offers a bigger bonus and a higher property cap, but each has trade-offs worth weighing.

Last reviewed:  · 2 min read

Key Facts

  • Help to Buy ISAs are closed to new savers since 2019
  • LISA allows £4,000 a year with up to £1,000 bonus; Help to Buy was £2,400 a year
  • Help to Buy property cap is £250,000 (£450,000 in London); LISA is £450,000 UK-wide

Why this comparison is mostly historical

Help to Buy ISAs stopped accepting new savers in November 2019, so if you don't already have one, the Lifetime ISA is your option for a government-boosted first-home deposit. Existing Help to Buy ISA holders can keep paying in and claim their bonus until 2030.

Both give a 25% bonus, but the structure differs, which is why holders sometimes consider switching.

How they stack up

The LISA lets you save more — £4,000 a year versus the Help to Buy ISA's roughly £2,400 — and its bonus can reach £1,000 a year against the Help to Buy ISA's £3,000 lifetime maximum. The LISA's property cap is £450,000 across the whole UK, while Help to Buy is £250,000 outside London.

But the Help to Buy ISA has no early-withdrawal penalty, so its money is more flexible. If there's any chance you won't buy, that flexibility matters.

FAQ

Frequently Asked Questions

Can I still open a Help to Buy ISA? +
No, Help to Buy ISAs closed to new applicants in November 2019. If you didn't open one before then, the Lifetime ISA is the current government-backed option for boosting a first-home deposit. Existing Help to Buy ISA holders can keep saving into theirs.
Should I transfer my Help to Buy ISA to a LISA? +
It can make sense if you want the bigger bonus and higher property cap, but the LISA locks your money in with a 25% penalty for non-qualifying withdrawals, while a Help to Buy ISA is penalty-free. Weigh the bigger potential bonus against losing that flexibility before transferring.
Can I have both a Help to Buy ISA and a LISA? +
Yes, you can hold both, but you can only use the government bonus from one of them towards buying your first home. Some people use one for the house and keep the other for retirement, but you can't double up the first-home bonus.

Topics covered

lifetime isa help to buy isa first home

This article is for informational purposes only and does not constitute financial advice. Always do your own research or speak to a qualified financial adviser before making financial decisions.