Home › LISA vs Help to Buy ISA
Two ISAs designed to help first-time buyers, with very different mechanics. Here's how the Lifetime ISA and the legacy Help to Buy ISA compare on bonus, deposit limits, eligibility, and which wins for which buyer.
Updated for the 2026/27 UK tax year.
Both the Lifetime ISA and the Help to Buy ISA were designed to help first-time buyers save toward a property deposit by adding a government bonus to qualifying contributions. They look superficially similar — both pay a 25% bonus on contributions — but the mechanics, limits, and current availability are different.
| Lifetime ISA | Help to Buy ISA | |
|---|---|---|
| Status | Open to new savers | Closed to new accounts since November 2019 |
| Bonus rate | 25% on contributions | 25% on savings, capped at £3,000 |
| Annual contribution limit | £4,000 (within £20,000 ISA allowance) | £200/month (£2,400/year), plus £1,000 initial deposit |
| Maximum bonus per year | £1,000 | £600 |
| Total maximum bonus | £32,000 (over up to 32 years) | £3,000 (lifetime cap) |
| Property value limit | £450,000 anywhere in UK | £250,000 outside London, £450,000 in London |
| Bonus timing | Monthly during saving, available for deposit | Paid at completion only, not at exchange |
| Eligibility to open | Age 18–39 | Closed; existing holders only |
| Withdrawal penalty (non-purchase) | 25% on full withdrawal (~6.25% net loss) | No penalty; you just don't get the bonus |
| Retirement use | Yes, from age 60 penalty-free | No, purchase only |
The LISA's flat £450,000 cap applies across the UK. For buyers in London or the South East, that cap can bite — entry-level flats in London frequently exceed £450,000 in 2026. The Help to Buy ISA's split cap (£450,000 in London, £250,000 elsewhere) is arguably more generous in the capital and significantly less generous outside it.
If you have a Help to Buy ISA already and you're buying in London at £300,000–£450,000, it's competitive. If you're buying outside London at £260,000+, the Help to Buy ISA's £250,000 cap rules it out for that property and the LISA wins by default.
One of the most important practical differences: the LISA bonus is available during the saving phase. You can use it as part of the deposit at exchange, when the conveyancing solicitor draws funds. The Help to Buy ISA bonus is calculated at completion and arrives after exchange — meaning it cannot be used as the exchange deposit. If you're relying on the bonus to make up the 5% or 10% deposit at exchange, the LISA structure is materially better.
The LISA's £4,000 annual cap is significantly higher than the Help to Buy ISA's £2,400/year (plus the one-off £1,000 opening deposit). A saver maxing the LISA each year for five years contributes £20,000 and earns £5,000 in bonus. The same saver in a Help to Buy ISA would contribute £13,000 over five years and earn £3,000 bonus — assuming they hit the lifetime bonus cap of £3,000 along the way.
The LISA wins by default — you cannot open a Help to Buy ISA. The Lifetime ISA is the only ISA-based first-home bonus wrapper still available to new savers. See our Best Lifetime ISAs UK comparison.
Three paths, depending on your timeline and target:
Each of you can hold your own LISA — and your own Help to Buy ISA if eligible. Two LISAs combined can earn up to £2,000 a year in bonus between you, materially accelerating deposit savings.
The four UK providers worth comparing are Moneybox, Nutmeg, AJ Bell, and Dodl. See Best Lifetime ISAs UK for full provider analysis. For most first-time buyers within a five-year horizon, Moneybox is the dominant choice — Cash LISA option, low entry, fast onboarding.
No. New Help to Buy ISA accounts have been closed since 30 November 2019. If you already had one before that date, you can keep contributing until November 2029 and claim your bonus until November 2030.
Yes, you can hold both. But you can only use the government bonus from one of them when buying a first home. Most savers maximise the LISA bonus given its higher annual cap.
Yes. Transfers do not count against the £4,000 LISA annual contribution allowance, although the funds transferred can still be used as part of your LISA balance and earn the 25% bonus going forward.
LISA: £450,000 anywhere in the UK. Help to Buy ISA: £250,000 outside London, £450,000 in London.
The LISA. £4,000 a year × up to 32 years (age 18–50) = up to £128,000 contributions and £32,000 maximum bonus. The Help to Buy ISA caps at £3,000 bonus on £12,000 contributions.
Monthly during the saving phase. The bonus lands in your LISA account 4–9 weeks after each contribution is reported by your provider. It's available to use as soon as it's paid in (subject to the 12-month rule for first-home withdrawals).
Different mechanism. The Help to Buy ISA bonus is calculated and paid only at the point of completion on your first home, claimed by your conveyancing solicitor. It cannot be used as part of the exchange deposit.
Side-by-side comparison of Moneybox, Nutmeg, AJ Bell and Dodl.
Open comparison →Work out the cost of withdrawing early.
Open calculator →Which wraps wins for first-time buyers.
Read comparison →Rules, time limits, and the £450,000 cap.
Read guide →Why it's not just losing your bonus.
Read guide →Project growth across cash and stocks ISAs.
Open calculator →This is general information, not financial advice. Pennywise Finance is not authorised by the Financial Conduct Authority. For decisions involving significant sums or complex circumstances, consult an FCA-authorised adviser or the free MoneyHelper service.