# Lifetime ISA vs Help to Buy ISA — which first-home account wins?

> Compare · Last reviewed 26 May 2026

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## Quick answer

Help to Buy ISAs closed to new applicants on 30 November 2019 but existing accounts still pay a 25% bonus up to £3,000. Lifetime ISAs are open to anyone aged 18–39 and pay a 25% bonus up to £1,000 a year until age 50.

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Both pay the government a 25% bonus on what you save towards a first home, but the rules, limits and property price caps are different.

## Lifetime ISA vs Help to Buy ISA

| Criterion | Lifetime ISA | Help to Buy ISA |
| --- | --- | --- |
| Open to new savers | Yes (aged 18–39) | Closed to new accounts since 30 Nov 2019 |
| Annual contribution limit | £4,000 (part of the £20,000 ISA allowance) | £200/month + £1,000 opening deposit |
| Government bonus | 25% on contributions (up to £1,000/year) | 25% on closing balance (max £3,000) |
| Property price cap (England) | £450,000 | £250,000 (£450,000 in London) |
| Bonus paid | Monthly into the account | At completion via the conveyancer |
| Can the bonus go to the deposit? | Yes — available at exchange | No — only at completion |
| Withdrawal penalty if not for first home | 25% (so you lose the bonus and some of your own money) | None — but no bonus paid |
| Can be used at age 60+ | Yes — penalty-free withdrawal for anything | No equivalent rule |

## When Lifetime ISA suits

- You are 18–39 and saving for a first home
- You can contribute up to £4,000 a year
- You also want a retirement back-up option at 60
- Your target property is up to £450,000 anywhere in the UK

## When Help to Buy ISA suits

- You already had an open Help to Buy ISA on 30 November 2019
- Your target property is up to £250,000 (or £450,000 in London)
- You'd rather have no penalty for withdrawing
- You're buying soon and the bonus-at-completion rule is acceptable

## Frequently asked questions

### Can I transfer my Help to Buy ISA into a Lifetime ISA?

Yes, but the transferred amount counts towards your £4,000 LISA annual limit and you must be under 40 at the point of transfer. The 25% bonus then applies under LISA rules.

### Can both partners use a Lifetime ISA on the same home?

Yes. Each first-time buyer can use their own LISA bonus on the same property, doubling the available bonus.

### What counts as a first-time buyer?

Someone who has never owned or held an interest in a residential property anywhere in the world. Inheriting a share of a property normally disqualifies you.

## Sources

- [HMRC — Lifetime ISA](https://www.gov.uk/lifetime-isa)
- [HMRC — Help to Buy ISA scheme rules](https://www.gov.uk/government/publications/help-to-buy-isa-scheme-rules)

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Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.