Savings Guide 2025

Help to Buy ISA Explained

Though closed to new applicants, many first-time buyers are still saving with a Help to Buy ISA. Understand your account and calculate your potential bonus.

What is a Help to Buy ISA?

The Help to Buy ISA was a government scheme designed to help first-time buyers save for a mortgage deposit. For every £200 saved, the government would add a £50 bonus, up to a maximum bonus of £3,000. Although the scheme closed to new applicants in 2019, existing holders can continue saving until 2029.

Key Features

  • 25% Government Bonus: Receive a bonus of up to £3,000 on your savings of £12,000.
  • Tax-Free Savings: All interest earned on your savings is completely tax-free.
  • Flexible Withdrawals: You can withdraw your money at any time without penalty, you just miss out on the bonus.
  • Closed to New Applicants: You can no longer open a new Help to Buy ISA.

Help to Buy ISA Calculator

£1200
£200
5 years

Your Deposit Total

Your Savings

£13,200

Government Bonus (25%)

£3,000


Total Deposit

£16,200

How to Claim Your Bonus

1

Continue Saving

Keep saving into your existing Help to Buy ISA account. Remember the monthly limit is £200.

2

Instruct Your Solicitor

When you are ready to buy your home, tell your solicitor or conveyancer you have a Help to Buy ISA.

3

Bonus is Claimed

Your solicitor will handle the paperwork and claim the bonus from the government on your behalf before the sale completes.

Frequently Asked Questions

Ready to Buy Your First Home?

Use your Help to Buy ISA savings to secure your dream new build property.