How To Claim Help To Buy ISA Bonus: A Complete Guide

The Help to Buy ISA has been a go-to for many first-time buyers looking to get onto the property ladder. 

And if you’re in the same boat, you might be wondering, “How exactly does the bonus work, and how do I make the most of it?” 

Well, worry no more. 

In this guide, we’re going to break down everything you need to know about the Help to Buy ISA bonus.

By the end of this, you’ll know how to claim your bonus, what you can use it for, and a lot more.

How Much Is the Help to Buy ISA Bonus?

The government offers a nice little incentive to help boost your savings with the Help to Buy ISA. 

Here’s how it works: for every pound you save, the government will add an extra 25%. 

So, if you’ve saved £2,000, you’ll get an additional £500.

The minimum amount you need to save to get the bonus is £1,600, which will get you a £400 bonus. 

If you go all the way and save £12,000, you’ll bag the maximum bonus of £3,000. 

Anything saved above £12,000 won’t earn you any extra government cash, but it’ll still be helpful for your deposit.

Think of it like this: the more you save, the bigger the bonus — up to that cap. 

It’s a great way to boost your savings pot, especially if you’re dreaming of that first home.

To help you visualise how much bonus you can earn based on your savings, here’s a handy table:

Amount Saved	Government Bonus	Total in ISA
£1,600	£400	£2,000
£2,000	£500	£2,500
£3,000	£750	£3,750
£4,000	£1,000	£5,000
£5,000	£1,250	£6,250
£6,000	£1,500	£7,500
£7,000	£1,750	£8,750
£8,000	£2,000	£10,000
£9,000	£2,250	£11,250
£10,000	£2,500	£12,500
£11,000	£2,750	£13,750
£12,000	£3,000	£15,000

This table shows how saving more in your Help to Buy ISA leads to a bigger government bonus — up to the maximum limit of £3,000.

How to Claim the Help to Buy ISA Bonus?

If you’re at the exciting stage where your mortgage is nearing completion, it’s time to cash in on that bonus. Here’s what you need to do:

1. Close Your Help to Buy ISA. You’ll need to withdraw all your funds and ask your ISA provider for a closing statement. Make sure you don’t empty the account without asking for this statement — it’s crucial for getting your bonus!
2. Give the Statement to Your Solicitor. Once you’ve got the closing statement, pass it along to your solicitor or conveyancer. They’re the ones who will apply for your bonus from the government.
3. Bonus Goes Straight to Your Solicitor. The bonus doesn’t get paid directly to you. Instead, it’s sent to your solicitor, who then uses it towards your completion costs, like your mortgage deposit or solicitor fees. It won’t help with the initial exchange deposit, but it’s still a big help overall.

The process might sound a tad complicated, but your solicitor will guide you through it. 

They’ve got your back and know exactly how to claim the Help to Buy ISA bonus to make sure everything goes smoothly.

What Can I Use the Help to Buy ISA Bonus For?

Now, this is a common question — and a good one.

The Help to Buy ISA bonus can only be used once your mortgage is completed. 

Essentially, it’s there to help with the final bits and bobs, like solicitor fees or even contributing to your mortgage deposit.

However, it’s important to note that you can’t use the bonus for the exchange deposit — the bit you pay to secure the property when you exchange contracts. 

It’s specifically intended for the final completion costs. Some lenders might be a bit flexible and allow you to juggle the funds around, but it’s ultimately up to them.

If you’re unsure how to make the most of your bonus or need a lender who’s a bit more relaxed about how it can be used, a good mortgage broker can point you in the right direction.

How Much Can I Contribute to a Help to Buy ISA?

With the Help to Buy ISA, you can contribute up to £200 per month. Plus, when you first open the account, you can make a one-off initial deposit of up to £1,200. 

So, if you want to get a head start, that first month is your chance to make a bigger contribution.

The idea is to keep adding to it each month to maximise your savings — and, in turn, your bonus. 

The more consistent you are with putting money in, the closer you get to that lovely £3,000 bonus. 

What If I Don’t Buy a House?

Life can be unpredictable, and sometimes plans change. 

If, for any reason, you decide not to buy a house after you’ve closed your Help to Buy ISA, don’t worry — you have options. 

You can ask your solicitor for a ‘purchase failure notification.’ This will allow you to reopen the ISA and re-deposit your funds, ready for another go when you find a property you like.

Alternatively, you could move your funds into another ISA, like a cash ISA or a stocks and shares ISA, using the same notification.

 It means that your hard-earned savings won’t be lost, and you can keep saving for that dream home whenever the time is right.

Can I Have a Help to Buy ISA If I’m a Cash Buyer?

Yes, you can absolutely have a Help to Buy ISA if you’re planning to buy a property outright without a mortgage. 

However, there’s a catch: you won’t be eligible for the 25% bonus unless you actually take out a mortgage. 

If you’re buying with cash, you can still use the Help to Buy ISA to save, but that bonus is off the table. Not ideal, but it’s worth knowing in advance.

Help to Buy Nationwide: What Do You Need to Know?

If you’re considering the Help to Buy scheme through a large lender like Nationwide, it’s good to know that the process is much the same as with other lenders. 

They’ll require the usual closing statement and work directly with your solicitor to claim the bonus. 

Nationwide has been a popular choice among first-time buyers for many reasons, including competitive rates and flexibility with ISA bonuses.

The Bottom Line

If you have more questions about your Help to Buy ISA or want some guidance on how best to use it, feel free to speak to an expert mortgage broker. 

They can help you navigate the process and make sure you get the best deal possible.

And that’s everything you need to know about the Help to Buy ISA bonus. Getting on the property ladder can feel like a challenge, but with the right tools and advice, you’ll be opening the door to your first home in no time.

Reach out to us today, and we’ll introduce you to a qualified mortgage broker. They’ll be able to advise you on Help to Buy ISAs and help you secure the right mortgage.