Last Call for the Help to Buy ISA

The final providers of the Help to Buy ISA will close to new applicants today (Saturday 30^th November)

The product – aimed at those saving for a first home deposit – has been available since December 2015, allowing potential first-time buyers aged 16 or over to save, with the income free from tax.

This was then topped up with a government bonus of up to £3,000 – more details here.

Treasury figures show that nearly 260,000 properties have been bought using the ISA across the UK with 339,747 bonuses paid through the scheme, with an average value of £943; the biggest proportion was in the North West of England.

On average, first-time buyers using Help to Buy ISAs are 28 – two years younger than the average age across all first-time buyers.

Whilst the scheme will officially close to new accounts, existing holders can keep on saving until autumn 2029, with bonuses needing to be claimed by 1st December 2030.

Some providers report a late surge for Help to Buy ISAs after a number of banks pulled their products; those that miss the deadline may opt for a Lifetime ISA (LISA) – more here.

The LISA also offers a government bonus, but potentially offers less choice and lower interest rates than the Help to Buy ISA; however, the LISA has a higher limit on property prices outside London, a larger potential government bonus, and the ability to save in both lump sums and monthly.

The Help to Buy scheme pays a bonus of up to £3,000 which can be used to buy a home of up to £250,000, or £450,000 in London; according to data analysed by This is Money, the spot which has seen the biggest payouts is the south London suburb of Croydon, with almost £1million in government bonuses injected into property there.