Free Tool

Calculate Your Government Bonus

See how much the government will add to your house deposit with a Help to Buy ISA or Lifetime ISA. Free money for first-time buyers!

LISA: £4,000/year max, up to £1,000 annual bonus, under £450k properties

£

Max £333/month (£4,000/year)

£

How much is already in the account?

months

When do you plan to buy? (2.0 years)

£

LISA limit: £450,000

LISA Government Bonus

£1,500

Free money from the government to boost your deposit

Your Savings

£6,000

Government Adds

£1,500

Total Available

£7,500

Compare Both Options

LISA gives £1,500 more

Lifetime ISA

£7,500

Bonus: £1,500

Help to Buy ISA

£6,000

Bonus: £1,200

Closed to new applicants

LISA Warning: You'll face a 25% withdrawal penalty if you take money out before age 60 (except for buying your first home under £450k or terminal illness). You must be 18-39 to open a LISA and it needs to be open for 12 months before you can use it for a house purchase.

First-time buyers only: Both schemes are only available if you've never owned property before (in the UK or anywhere else). You also can't use both bonuses for the same property purchase.

Help to Buy ISA vs Lifetime ISA: Which is Best for First-Time Buyers?

The UK government offers generous bonuses to help first-time buyers save for a deposit. Both the Help to Buy ISA and Lifetime ISA add 25% to your savings, but they work quite differently. Understanding which suits you best could mean thousands of extra pounds towards your first home.

What is a Lifetime ISA (LISA)?

A Lifetime ISA lets you save up to £4,000 per year (about £333 per month) and the government adds a 25% bonus - that's up to £1,000 free every year. You can use it to buy your first home worth up to £450,000, or keep it for retirement (you can withdraw penalty-free from age 60). However, if you withdraw for any other reason, you'll face a harsh 25% penalty on everything you take out. You must be between 18-39 to open a LISA, and it needs to be open for at least 12 months before you can use it to buy a house.

What About Help to Buy ISAs?

Help to Buy ISAs closed to new applicants in November 2019, but if you already have one, you can keep paying in until November 2029. They allow you to save up to £200 per month (£12,000 total) and get a maximum bonus of £3,000. The property price limit is £250,000 (£450,000 in London). While the total bonus is lower than what you could get from a LISA over several years, HTB ISAs don't have the harsh withdrawal penalties - you just lose the bonus if you withdraw early.

Can You Transfer from Help to Buy ISA to LISA?

Yes! You can transfer your Help to Buy ISA into a Lifetime ISA without it counting towards your annual £4,000 LISA limit. This is often a smart move because you can then save more per year (£4,000 vs £2,400 in a HTB ISA) and potentially get a bigger bonus. However, once you transfer, you'll be subject to LISA rules including the 25% withdrawal penalty. Make sure you're committed to either buying a qualifying first home or leaving the money until age 60 before transferring.

LISA vs HTB ISA: Which Should You Choose?

Since Help to Buy ISAs are closed to new applicants, the Lifetime ISA is now the only option for new savers. If you already have a HTB ISA, consider transferring to a LISA if you want to save more than £200 per month, are certain you'll use it for a first home or retirement, and the property you're buying is under £450,000. Keep your HTB ISA if you want more flexibility (no withdrawal penalty) or are buying soon and can't meet the LISA's 12-month minimum holding period. Remember, you can't use both bonuses for the same purchase.