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