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.
Anyone under 40 saving for first home (up to £450,000) or supplementing retirement savings.
No longer available to new savers — existing accounts still active.
| 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.
Frequently asked questions
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.