⚖️ Comparison · Updated for 2026
Lifetime ISA (LISA) vs Help to Buy ISA (closed to new)
Side-by-side comparison, when-to-use-each guide, and instant conversion. Reviewed for 2026.
Quick answer: The Help to Buy ISA closed to new applicants in November 2019 — existing holders can save until November 2029 and claim the bonus until November 2030. The Lifetime ISA replaced it: 25% government bonus on up to £4,000/year = £1,000 max annual bonus. LISA for first home (max property £450,000) or retirement at 60. 25% withdrawal penalty if used for anything else.
Decision guide — when to use which
Use Lifetime ISA (LISA) when…
Anyone under 40 saving for first home (up to £450,000) or supplementing retirement savings.
Use Help to Buy ISA (closed to new) when…
No longer available to new savers — existing accounts still active.
📊 Side-by-side comparison
| Aspect | Lifetime ISA (LISA) | Help to Buy ISA (closed to new) |
|---|---|---|
| Bonus rate | 25% on up to £4,000/year | 25% on up to £2,400/year |
| Max annual bonus | £1,000 | £600 |
| Max property price | £450,000 | £250,000 (£450,000 in London) |
| Open to new | Yes (age 18-39) | No (closed Nov 2019) |
| Pension use | Yes (60+) | No |
Frequently asked
?
Is the Lifetime ISA worth using for a first home?
Yes if the property you want is under £450,000. The 25% bonus is very competitive — effectively a 25% return on the savings portion. The main risk: if your plans change, the 25% withdrawal penalty means you could get back less than you put in.
?
Can I transfer my Help to Buy ISA to a LISA?
Yes — transfer counts towards your annual LISA contribution limit. You'll also need to open the LISA before your 40th birthday.
Reviewed for 2026. All conversion factors and historical references verified against official sources (ISO standards, government weights & measures legislation, IEC technical specifications). Built by a UK-based qualified primary teacher and FA Level 2 coach as part of 247QuickTools' free utility-tools project. We don't sell SEO links or accept paid placements in this content.