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How does a Help to Buy ISA work?

Published on 5 October 2022 | Modified on 14 December 2022

Written by Lana Jones
Conveyancing Solicitors

Help to Buy ISAs are savings accounts that you can make monthly savings into just like any ISA.  However, the bonus of these ISAs is that if you use the saved money towards the purchase of your first home, the Government will top up your savings by 25%, up to a maximum of £3,000.

The scheme ended for new applicants in 2019, however, if you do have an account set up, do make sure that you are making the most of the opportunity:

  • the 25% contribution does not have to be paid back at any point, so this is free money.
  • If you are a couple and you both have a HTB ISA account, then you can both claim your bonus meaning you could unlock an extra £6,000 to put towards your first property.
  • You can access your HTB Savings at any time – although you can only claim the bonus if you use the money for your first property purchase.

There are criteria that you will need to meet in order to maximize and claim your bonus:

  • You can save up to £200 per month in these accounts – the more you save, the more bonus you can claim, up to a maximum bonus of £3,000 per ISA.
  • You can use the bonus to purchase a property but it must be your first and only property. And you must be intending to live at the property – the bonuses can’t be used for investment purchases.
  • The maximum purchase price is set at £250,000 (or up to £450,000 in London).

So, if you did open a HTB ISA a few years ago, make sure you are making the most of it, and let your conveyancer know as early as possible that you intend to claim the bonus.  You will need to obtain a closing statement from your bank, and these can take some days to be issued.  Your conveyancer will then need to submit a declaration to HTB in order to draw down the bonus payment.

You can find out more information about HTB ISAs here:

Poole Alcock would love to help you secure your first home. If you would like to speak to someone about purchasing a property using a Help To Buy ISA or if you have any queries regarding the conveyancing process, please do call us.  Visit our website for a quote, , or get in touch on 0800 470 0331

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