Help to Buy ISA
Definition
A savings account (closed to new applicants since November 2019) where the government adds a 25% bonus when funds are used toward a first home. Maximum bonus is £3,000 on £12,000 of savings. Unlike the Lifetime ISA, the bonus is paid at the point of purchase through the solicitor, not into the account. Existing accounts can still be used until November 2030.
Why it matters
If you opened a Help to Buy ISA before it closed, you can still use it. However, the bonus is paid at completion (not exchange), so it can't be used toward your deposit. Many first-time buyers also hold a Lifetime ISA — but you can only use the government bonus from one, not both, for the same purchase.
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