Help to Buy ISA: How Britons could miss out on the valued 25 percent bonus

Help to Buy ISAs are no longer open to new savers, however, many people are a part of the scheme and are using it to prepare for purchasing a property. The ISA is designed to help people get on the property ladder with greater ease. Under Help to Buy rules, savers who do have an account have until November 30, 2029 to save into it.


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Once this deadline expires, future homeowners will then have another 12 months – until December 2030 – to claim their bonus. 

To be eligible for a bonus, a saver must have put away at least £1,600 into their ISA.

After this, 25 percent of the savings up to a maximum of £3,000 can be added on top in a well needed boost for first-time buyers.

To receive the maximum bonus, savers must have put away £12,000 into the Help to Buy ISA.

The bonus, however, is not immediately received by the saver after the money is put into the account. 

Instead, when a person is close to buying their first property, they are required to instruct their solicitor or conveyancer to apply for the government bonus.

Once the bonus is received, it is added to the money a person is putting towards their first home.

The government website states: “The bonus must be included with the funds consolidated at the completion of the property transaction.

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“The bonus cannot be used for the deposit due at the exchange of contracts to pay for solicitor’s, estate agent’s fees or any other indirect costs associated with buying a home.”

However, it is worth noting there are a number of criteria which must be met to be eligible to receive the bonus.

It is not simply enough to have a Help to Buy ISA to receive the valued bonus that many have used this method of saving to receive.

One major condition includes the property having a purchase price of up to £250,000 – or, in London, up to £450,000. 


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If a future homeowner purchases a property which has greater value than these prices, they could stand to significantly lose out. 

Furthermore, Help to Buy ISAs cannot be used for a few other reasons.

This includes if a person intends to rent out the property while living somewhere else, or if they own another home. 

Savers are also not permitted to have more than one of this kind of ISA as a savings method. 

Once savings have reached the minimum amount, savers can claim their government bonus at any time.

Interest rates on Help to Buy ISAs vary from provider to provider, so it is important for existing savers to monitor this.

There is, though, no interest which can be earned on a government bonus, because the money is not received until a property is purchased. 

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