Help to Buy ISA bonus calculator
The legacy Help to Buy ISA pays a 25% government bonus, up to £3,000, towards a first home. It is closed to new savers, but existing holders can still claim. This shows the bonus and the price caps.
Over the £250,000 cap: the bonus cannot be used on this property.
How the bonus works
The Help to Buy ISA rewards first-time buyers with a 25% top-up from the government on what they have saved. The bonus counts savings up to £12,000, so the most anyone can receive is £3,000. A minimum of £1,600 has to be saved before any bonus is paid, which is the point where 25% reaches the £400 floor. The bonus is claimed at completion and goes towards the home, not towards the exchange deposit.
Two property price caps decide whether the bonus can be used. Outside London the home must cost £250,000 or less, and in London the limit is £450,000. Above the relevant cap the savings and interest are still yours, but the government bonus is lost for that purchase. The scheme has been closed to new applicants since November 2019, so only existing account holders are affected.
Worked example
Save £8,000 in a Help to Buy ISA and the 25% bonus adds £2,000, giving £10,000 towards a first home. Keep saving to £12,000 and the bonus reaches its £3,000 maximum. On a £300,000 property outside London, which is under the £250,000 cap, the bonus can be claimed at completion.
Common questions
Can I still open a Help to Buy ISA?
No. The Help to Buy ISA closed to new savers on 30 November 2019. Only people who already held one can keep paying in, and they can claim the bonus up to a set deadline. If you do not have one, look at the Lifetime ISA instead, which pays a similar 25% bonus.
How big is the bonus?
The government adds 25% of what you have saved, up to a maximum bonus of £3,000. That ceiling is reached once your savings reach £12,000. On the £8,000 example the bonus is £2,000.
Is there a minimum before I get anything?
Yes. You need to have saved at least £1,600 to claim any bonus, which is the point where the 25% reaches the £400 minimum payout. Below that, no bonus is paid, so it is worth reaching the threshold before you buy.
What are the property price limits?
The bonus can only be used on a home worth up to £250,000 outside London, or up to £450,000 in London. If the property is over the relevant cap, you keep your savings and interest but the government bonus cannot be claimed towards that purchase.
When is the bonus paid?
At completion, not when you save. Your solicitor or conveyancer applies for the bonus and it goes towards the purchase, so it cannot form part of the deposit you put down at exchange. The money in the account itself is still yours to use for the deposit.