The Lifetime ISA (LISA) offers a 25% bonus up to £1,000/year on max £4,000 annual contribution. Compare your potential returns:
Help to Buy ISA Calculator 2025 – UK Government Bonus Estimator Updated Feb 2026
Calculate Your Help to Buy ISA Bonus
See how much government bonus you could receive toward your first home purchase. Enter your savings to get started.
Use Calculator NowThe Help to Buy ISA was a government savings scheme designed to help first-time buyers in the UK save for their home deposit. Although the scheme closed to new applicants on 30 November 2019, existing account holders can continue saving and claim the 25% government bonus until 2030. Our free Help to Buy ISA calculator helps you understand exactly how much bonus you could receive and plan your property purchase accordingly.
Whether you're close to buying your first home or just getting started with your savings journey, this calculator provides clarity on your bonus entitlement, monthly contribution limits, and the timeline for claiming your government contribution.
What Is a Help to Buy ISA?
The Help to Buy ISA was a tax-free savings account launched by the UK government in December 2015 to help first-time buyers save for a home deposit. Key features included:
- 25% Government Bonus: The government added 25% to your savings, up to a maximum bonus of £3,000
- Tax-Free Interest: All interest earned was completely tax-free
- Monthly Savings: You could save up to £200 per month (with an initial £1,000 deposit allowed)
- First-Time Buyers Only: Available exclusively to those who had never owned a property before
Key Takeaways
- Scheme Closed: New applications ended 30 November 2019
- Existing Accounts: Continue saving until November 2029
- Bonus Claim Deadline: Must claim by 1 December 2030
- Maximum Bonus: £3,000 government contribution
- Minimum Bonus: £400 (requires £1,600 saved)
Critical Trap: Completion vs. Exchange
The bonus is paid on Completion (when you get the keys), NOT on Exchange (when you sign the contract and pay the deposit).
Result: You CANNOT use the government bonus for your exchange deposit. You must fund the exchange deposit yourself. The bonus only lowers your mortgage amount later.
The "Price Cap" Danger
If you buy a house for £250,001 (outside London), you get £0 bonus.
The limit is strict: £250k outside London, £450k inside. Negotiate hard to stay under the limit or lose your free money.
H2B ISA vs. Lifetime ISA (LISA)
For many, a LISA is now better. It has a higher limit (£4,000/year vs £2,400) and a higher price cap (£450k nationwide).
If you are buying outside London for >£250k, you MUST switch to a LISA to get any bonus at all.
The £12,000 Reality
You can save more than £12,000 in this account, but the government bonus STOPS at £12,000 (£3k bonus).
If you have £15,000 saved, your bonus is still only £3,000. Consider moving excess cash to a higher-interest savings account.
How Does the Help to Buy ISA Work?
The Help to Buy ISA operates on a simple principle: for every £4 you save, the government adds £1. Here's how the mechanics work:
Monthly Contributions
You can deposit up to £200 per calendar month into your Help to Buy ISA. In your first month, you're allowed to make an additional one-off deposit of up to £1,000, giving you a head start on your savings.
The 25% Bonus Calculation
This means to receive the maximum £3,000 bonus, you need to save £12,000 in your ISA.
Bonus Payment Process
Unlike the Lifetime ISA where the bonus is added monthly, the Help to Buy ISA bonus is paid at completion of your property purchase. Your solicitor applies for the bonus on your behalf, and it contributes directly toward your property purchase.
How to Use Our Help to Buy ISA Calculator
Our calculator helps you plan your savings and understand your bonus entitlement:
- Enter Current Balance: Input how much you've already saved in your Help to Buy ISA
- Set Monthly Contribution: Enter how much you plan to save each month (up to £200)
- Select Target Date: Choose when you hope to buy your first home
- View Results: See your projected total savings and government bonus
Example Calculation
Scenario: Emma opened her Help to Buy ISA with £1,000 in December 2019 and saves £200/month.
- Current balance (Jan 2025): £14,200 (£1,000 initial + 51 months × £200)
- Maximum bonus applies to: £12,000
- Government bonus: £3,000
- Total toward home purchase: £17,200
Note: Emma has saved more than the £12,000 maximum for bonus purposes, so she'll receive the full £3,000 bonus but won't get additional bonus on the extra £2,200.
Understanding the 25% Bonus Structure
The government bonus structure has specific rules you need to understand:
| Your Savings | Government Bonus (25%) | Total Available |
|---|---|---|
| £1,600 (minimum) | £400 | £2,000 |
| £4,000 | £1,000 | £5,000 |
| £8,000 | £2,000 | £10,000 |
| £12,000 (maximum for bonus) | £3,000 | £15,000 |
| £15,000 | £3,000 (capped) | £18,000 |
Important Note on Interest
The 25% bonus is calculated only on your contributions, not on interest earned. However, all interest is tax-free and can be used toward your home purchase alongside the bonus.
Contribution Limits & Important Rules
Monthly Deposit Cap
You can deposit up to £200 per calendar month. Missed months cannot be made up later - if you don't deposit in a particular month, you lose that month's allowance.
First Month Boost
When you first open the account, you can deposit up to £1,200 in the first calendar month (this includes the standard £200 limit, so effectively £1,000 extra).
No Lump Sum Top-Ups
Unlike other ISAs, you cannot deposit lump sums beyond your monthly limit. The scheme is designed to encourage regular monthly saving.
Multiple ISAs Rule
You can only have one Help to Buy ISA at a time. However, you can transfer your Help to Buy ISA between providers to get better interest rates without losing your bonus entitlement.
Who Is Eligible for a Help to Buy ISA?
To qualify for a Help to Buy ISA bonus, you must meet these criteria:
- Age: Be 16 years or older
- Residency: Be a UK resident
- First-Time Buyer: Never have owned a property anywhere in the world
- No Other Help to Buy ISA: Only one Help to Buy ISA per person
- Property Value: Purchase a property worth £250,000 or less (£450,000 in London)
- Mortgage Required: Take out a mortgage of at least 25% of the property value
- Primary Residence: The property must be your only home and main residence
Using Your ISA to Buy a Home
The Purchase Process
When you're ready to buy your first home:
- Find a Property: Ensure it's within the price limits (£250,000 or £450,000 in London)
- Inform Your Solicitor: Tell them you have a Help to Buy ISA and want to claim the bonus
- Provide ISA Documents: Your solicitor will need your ISA closing statement
- Close Your ISA: You must close your account before claiming the bonus
- Bonus Application: Your solicitor applies to the government for your bonus
- Completion: The bonus is transferred at completion and reduces your mortgage amount
Property Requirements
- Must be purchased with a mortgage (minimum 25% of purchase price)
- Must be the only home you own
- Must be your main residence
- Can be freehold or leasehold
- Can be a new build or existing property
- Cannot be a buy-to-let investment
Help to Buy ISA vs Lifetime ISA: Which Is Better?
If you opened a Help to Buy ISA before the deadline, you might be wondering whether to continue with it or switch to a Lifetime ISA (LISA). Here's a comparison:
| Feature | Help to Buy ISA | Lifetime ISA |
|---|---|---|
| Bonus Rate | 25% | 25% |
| Maximum Bonus | £3,000 | £33,000 (up to age 50) |
| Monthly Limit | £200/month | £4,000/year |
| Bonus Timing | At property purchase | Monthly |
| Property Limit | £250,000 (£450k London) | £450,000 (anywhere in UK) |
| Withdrawal Penalty | None (just lose bonus) | 25% penalty (lose bonus + some savings) |
| Age Limit | None | Must open before age 40 |
| Use for Retirement | No | Yes (after age 60) |
Recommendation: If you already have a Help to Buy ISA, you can keep it and also open a Lifetime ISA, using both for your first home purchase (subject to certain rules). Consider your purchase timeline and property budget when deciding which works best for you.
Transferring Your Help to Buy ISA
You can transfer your Help to Buy ISA between providers to secure better interest rates:
- Transfer Process: Use the official ISA transfer process - don't withdraw and redeposit
- Bonus Preservation: Your bonus entitlement is maintained when transferring
- Contribution Continuity: You can continue your monthly £200 contributions with the new provider
- No Limits: You can transfer as many times as you like
Why Transfer?
Interest rates vary significantly between providers. Regularly comparing rates and switching providers can add hundreds of pounds to your savings over time. Always use the official transfer process to protect your bonus entitlement.
First-Time Buyer Savings Schemes Around the World
Many governments offer dedicated savings programs to help first-time home buyers build a deposit. Here is how the UK Help to Buy ISA compares with equivalent schemes internationally.
| Country | Scheme Name | Government Bonus / Incentive | Annual Contribution Limit | Property / Income Limits |
|---|---|---|---|---|
| United Kingdom | Help to Buy ISA (closed to new applicants Nov 2019); Lifetime ISA (LISA) is active replacement | Help to Buy ISA: 25% bonus, max £3,000. LISA: 25% bonus, max £1,000/year (£32k lifetime) | Help to Buy ISA: £2,400/year (£200/month + £1,000 initial). LISA: £4,000/year | LISA: Property max £450,000. Must be age 18–39 to open. Penalty for non-qualifying withdrawals. Help to Buy ISA limit was £250,000 (£450,000 in London). |
| Canada | First Home Savings Account (FHSA) — launched April 2023 | Contributions are tax-deductible (like RRSP); withdrawals for first home are tax-free (like TFSA). No direct cash bonus, but significant tax savings. | C$8,000/year; C$40,000 lifetime maximum | Must be Canadian resident, first-time buyer, age 18+. Home purchase must occur within 15 years. Unused room carries forward 1 year. FHSA Calculator |
| Australia | First Home Super Saver Scheme (FHSSS) | Tax savings through super concessional rate (15%) vs marginal rate; no direct cash bonus. Effective benefit varies by income bracket. | A$15,000/year voluntary contributions; A$50,000 lifetime limit for first home release | Must be first home buyer in Australia; never previously owned property. Applies to voluntary super contributions only. Subject to super rules and ATO approval for release. |
| United States | No federal first-time buyer savings account. Individual states have First-Time Home Buyer Savings Programs (Idaho, Montana, Oregon, Virginia, etc.) | State programs: tax deductions on contributions (varies by state, typically 0–10% state income tax saving). Some states offer grants or matched savings through down payment assistance programs. | Varies by state: typically $5,000–15,000/year. Federal: Roth IRA allows up to $10,000 first-home penalty-free withdrawal (lifetime limit). | State programs vary. FHA loans allow 3.5% down payment. HUD approved counseling often required for grants. Income limits typically 80–120% of area median income for grant programs. |
| Ireland | Help to Buy (HTB) Scheme — tax refund for new builds and self-builds | Income tax refund of 10% of purchase price (new builds only); maximum €30,000 per claim | Based on income tax paid over preceding 4 years; maximum claim €30,000 | Property value must be €500,000 or less. Must be for new or self-built property. First-time buyers only. Must take out mortgage of at least 70% LTV. Scheme extended to 2029. |
| Germany | Wohn-Riester (housing Riester) + Baukindergeld (child home subsidy, ended 2023) + KfW starter loans | Wohn-Riester: State allowances (€175/year base + per-child bonuses) + tax deductions for certified plans. KfW: subsidized loan rates for energy-efficient new builds. | Riester: up to €2,100/year for full allowance. KfW credit up to €150,000 at reduced rates. | Wohn-Riester available to employed persons paying into pension system. Must be owner-occupied primary residence. Baukindergeld ended Mar 2023; new KfW “Junges Wohnen” program for young buyers introduced 2024. |
Government savings schemes and property rules change frequently. Always verify current scheme details with official government sources before making financial decisions. This comparison is for general informational purposes only.
Frequently Asked Questions
No, the Help to Buy ISA scheme closed to new applicants on 30 November 2019. If you already have an account opened before this date, you can continue saving until November 2029 and claim your bonus until December 2030. For new savers, the Lifetime ISA is the current alternative.
The maximum government bonus is £3,000. To receive this, you need to save £12,000 in your Help to Buy ISA. You can continue saving beyond £12,000 (up to the overall ISA limit), but you won't receive additional bonus on savings above £12,000.
The minimum savings required to receive a bonus is £1,600. This qualifies you for the minimum bonus of £400. There is no time limit on how quickly you must reach this amount.
No, there are restrictions. The property must be worth £250,000 or less (or £450,000 or less in London). It must be your only home and main residence, and you must purchase it with a mortgage of at least 25% of the property value. Buy-to-let properties are not eligible.
Yes! If you're both first-time buyers, you can each have a Help to Buy ISA and claim separate bonuses on the same property purchase. This means you could receive up to £6,000 in combined government bonuses toward your home.
You must claim your Help to Buy ISA bonus by 1 December 2030. Your solicitor must submit the claim before this date. You can continue saving into your ISA until November 2029, giving you time to complete your purchase.
Yes, you can withdraw money at any time. However, if you withdraw funds, you can only replace them within the same month's £200 limit. If you use the money for something other than your first home, you won't receive the government bonus on those withdrawn funds.
The bonus is paid at property completion, not when you exchange contracts. Your solicitor or conveyancer applies for the bonus on your behalf after you've closed your ISA account. The bonus funds go directly toward your property purchase and reduce the amount you need to borrow.
If your purchase falls through after your solicitor has applied for the bonus, the bonus will be returned to the government. You can reopen your Help to Buy ISA with your original provider (or a new one) and continue saving. Any returned bonus won't count against your lifetime allowance.
Yes, you can transfer funds from a Help to Buy ISA to a Lifetime ISA. However, transfers count toward your annual £4,000 LISA limit. The transferred amount will then be eligible for the 25% LISA bonus instead. Consider seeking financial advice before transferring.
If you miss a month's £200 contribution, you cannot make it up later. Each month's allowance is use-it-or-lose-it. However, you can continue contributing in subsequent months up to the monthly limit.
Yes, you can use a Help to Buy ISA for a self-build property, provided it will be your only home and main residence, and the land plus construction costs don't exceed the property value limits (£250,000 or £450,000 in London).
No, the government bonus is completely tax-free. Neither the bonus nor any interest earned in your Help to Buy ISA is subject to income tax.
Yes, but with restrictions. In the same tax year, you can only contribute to one Cash ISA. If you want to contribute to both, some providers offer "split ISAs" or you could transfer your Cash ISA to a Stocks & Shares ISA. The overall annual ISA limit (£20,000 for 2024-25) applies to all ISA contributions combined.
Interest rates vary by provider and change over time. As of 2024-25, rates typically range from 2% to 5% AER. It's worth shopping around and transferring your ISA to get the best rate, as better interest can significantly boost your total savings over time.
Trusted Resources
For official information about the Help to Buy ISA scheme:
- GOV.UK - Help to Buy ISA - Official government guidance
- HM Treasury - Scheme Rules - Detailed scheme documentation
- MoneyHelper - Free government-backed money guidance
Created by: CalculatorZone Financial Team
Last Updated: February 20, 2026
Methodology: This calculator uses official Help to Buy ISA rules and rates published by HM Treasury. It calculates your potential government bonus based on your monthly contribution amounts and timeline.
This calculator provides estimates for educational purposes only. Government rules and ISA providers' terms and conditions apply. Always verify current rates and rules with official government sources before making financial decisions.
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