Help to Buy ISA End Date Explained: Are There Alternatives?

If you’ve been saving up with the dream of owning your first home, chances are you’ve come across the Help to Buy ISA. 

But you might be wondering if it’s still around or if you’ve completely missed the boat. 

The scheme closed to new applicants back in 2019, which was a bit of a letdown for many first-time buyers. 

But here’s the good news: if you opened one before the deadline, you can still add to it – and even score a 25% bonus from the government when you’re ready to buy.

If you’re curious about whether you can still use it to stretch your savings further or need alternatives, this article is for you.

We’ll explain to you everything about the Help to Buy ISA deadlines, bonuses, and what other options you have if you missed out on this scheme.

When Did the Help to Buy ISA End?

The Help to Buy ISA end date was 30th November 2019. So, if you were hoping to set up a new Help to Buy ISA now, we’ve got some bad news — it’s a bit late.

But don’t worry, there are other options out there for first-time buyers. (More on that in a bit.)

To clarify, the new Help to Buy ISA was officially closed for new applications on that date. 

But if you were savvy enough to open one before the Help to Buy deadline, you can still contribute to it until 2029. 

Plus, you have until December 2030 to claim that government bonus of up to 25%, which makes your savings work a little harder for you.

What Happened After the Help to Buy ISA Deadline?

As mentioned, the scheme stopped accepting new applicants on 30th November 2019, but if you already had one, you can keep it ticking along. 

That means you can continue adding to your savings until November 2029. 

The beauty of this scheme is that the government will top up your savings by 25%, up to a maximum of £3,000, provided you’re using those savings for a property worth up to £250,000 (£450,000 in London).

But don’t get too excited thinking it’ll cover your entire deposit — the bonus only kicks in after your solicitor applies for it, right before you buy your home. 

It doesn’t contribute to the initial deposit you need to secure the property. But it does help reduce the amount you’ll have to borrow.

If you’re still putting money into your Help to Buy ISA, make sure you know the rules: 

• the monthly contribution limit is £200, and
• there’s an initial lump sum of £1,200 that you could have added when opening the account. 

It might not sound like much, but if you stick with it, it adds up — and that 25% bonus can be a nice cherry on top.

What Are My Options if I Missed the Deadline?

If you’re feeling a bit deflated because you missed the Help to Buy ISA deadline, don’t worry. 

There are still a couple of solid options if you’re aiming to get on the property ladder. 

One big alternative is the Lifetime ISA (LISA).

With a Lifetime ISA, you can save up to £4,000 a year, and the government will throw in a 25% bonus on top. That’s an extra £1,000 a year just for saving. 

If you’re aged 18 to 39, you can open a LISA and use the money for your first home or to save for retirement.

Plus, unlike the Help to Buy ISA, you can actually use your LISA savings for the initial deposit, which definitely makes things a bit easier when you’re ready to buy.

There are a few rules, though. You’ll need to have your LISA open for at least 12 months before using it to buy a house, and the property price must be £450,000 or less. 

But overall, it’s a great savings tool if you missed out on the Help to Buy ISA.

Another option is the Deposit Unlock Scheme—a great choice if you’re interested in a self-build project. 

This scheme allows you to get a mortgage on a new-build home with just a 5% deposit. Ideal if you don’t have a huge amount saved up yet.

It’s backed by big-name home builders and mortgage lenders, so it makes getting a mortgage for a self-build more accessible, even if you’re short on savings.

With the Deposit Unlock Scheme, you can access a mortgage with a much smaller deposit. 

It’s a great choice if you’re dreaming of building your own place but don’t want to wait forever to save up a large down payment.

Can I Transfer My Help to Buy ISA to a Lifetime ISA?

Yes, you can move your Help to Buy ISA into a Lifetime ISA (LISA) if it suits your savings goals. 

This can be a good option if you like the extra flexibility a LISA offers, especially if you plan to keep saving and want to make the most of the government bonus.

There’s a limit, though: you can only put £4,000 into a LISA each tax year, and any amount transferred from your Help to Buy ISA counts toward that £4,000 cap. 

So, if you’ve saved up more than £4,000, you might need to split the transfer across two tax years. Timing is key, especially if you’re planning to buy a property soon.

For instance, if you have £8,000 in your Help to Buy ISA, you could transfer £4,000 before the tax year ends (say early March 2025), and the other £4,000 after the new tax year begins (from April 2025 onwards).

Is the Help to Buy Equity Loan Scheme Still Available?

No, the Help to Buy Equity Loan scheme also ended recently. 

Applications closed on 31st October 2022, and the scheme officially wrapped up in March 2023. 

If you’re still interested in government support for buying a home, there are other schemes in place, such as the First Homes scheme, Shared Ownership, and the Mortgage Guarantee scheme.

• First Homes Scheme. This one gives first-time buyers a discount of 30-50% on new-build properties. The discount is linked to the property, meaning it will still apply when you sell — great news for future buyers, too.
• Shared Ownership. Here, you can buy a share of a property (usually between 10-75%) and pay rent on the rest. You can then gradually buy more shares (called “staircasing”) until you own the property outright.
• Mortgage Guarantee Scheme. This scheme, extended until December 2024, allows buyers to purchase a property with just a 5% deposit. The government guarantees part of the mortgage, making lenders more willing to offer high loan-to-value mortgages.

These schemes aim to make buying a home more accessible, even without a Help to Buy ISA or Equity Loan.

How Do I Use My Help to Buy ISA to Buy a Home?

If you’re lucky enough to have a Help to Buy ISA, here’s how to make the most of it. 

You can use your savings to buy a property up to £250,000 (£450,000 in London). 

Once you’ve made an offer on a property and it’s been accepted, your solicitor will apply for the government bonus on your behalf.

Typically, after making an offer, contracts are exchanged 7-28 days before the move-in date. 

Your solicitor will then apply for the bonus once you notify your provider of your ISA closure and transfer your deposit to the mortgage lender. 

This process ensures that the bonus is applied directly to the final amount, reducing the loan needed.

One important note: the 25% government bonus doesn’t go towards your initial deposit. Instead, it’s paid at completion, which can catch some first-time buyers off guard. 

It means that while it’s great for reducing the amount you need to borrow, you’ll still need to cover the initial deposit yourself. 

It’s always wise to speak with your solicitor early to ensure you understand the timing and paperwork involved.

Practical Steps for Using Your Help to Buy ISA

• Let Your Provider Know – Once your offer is accepted, let your Help to Buy ISA provider know you’re ready to close the account. This is the first step in getting your bonus.
• Get Your Solicitor on Board – Your solicitor is in charge of applying for the government bonus, so make sure they’re in the loop early on. A quick chat with them during the buying process can save you hassle later. They’ll handle the details, but it’s best to keep them informed from the start.
• Be Aware of the Timing – The government bonus only gets paid at the final completion stage. You’ll need other funds ready for the initial deposit to keep everything moving smoothly.

>> More about Help To Buy ISA Bonus

Forces Help to Buy Scheme

The Forces Help to Buy (FHTB) scheme is a great way for members of the armed forces to get on the property ladder. 

Originally introduced as a temporary scheme, it became permanent in December 2022, offering a valuable boost to those looking to buy a home.

Here’s how it works: if you qualify, you can borrow up to 50% of your annual salary (up to £25,000) interest-free to help with property costs.

Quick Facts About the Forces Help to Buy Scheme:

Who’s Eligible?

You can apply if you’re a regular service member with at least 12 months of service and six months left on your contract. 

Unfortunately, this scheme isn’t open to reservists or Military Provost Guard Service members.

Loan Terms

This interest-free loan is repaid over 10 years and can be used to buy your first home, move to a new one, or even expand your current property in some cases.

How to Apply

Applications are made through the Joint Personnel Administration (JPA) system. It’s a good idea to apply at least six weeks before your planned completion date to keep things on track.

Since its launch, the FHTB scheme has helped around 30,000 armed forces members buy their own homes, with over £450 million in loans provided.

It’s a strong step from the government in supporting homeownership for the armed forces.

Can I Still Get The Best Mortgage Deal Without a Bigger Deposit?

Absolutely. Even if you don’t have a hefty deposit, you can still find competitive mortgage deals. 

Lenders understand that many first-time buyers don’t have a huge pot of savings, and there are plenty of high loan-to-value (LTV) mortgages available.

Working with a mortgage broker can be especially helpful here, as they can guide you to lenders who are more flexible with deposits and can offer competitive rates. 

They’ll take into account your personal circumstances and help you find the best possible deal.

The Bottom Line

Getting on the property ladder with a Help to Buy ISA or similar schemes can really make a difference. 

But let’s be real—choosing the right option can feel a bit overwhelming with all the choices out there. 

The key is to look at your finances and pick what works best for your plans. 

Whether you stick with your Help to Buy ISA, switch to a Lifetime ISA, or check out other schemes, it’s all about finding what suits you.

For the best advice, talk to a mortgage broker who knows Help to Buy inside out. 

They can explain everything, from eligibility to transfers, and help you find the best option for getting closer to owning your first home.

And if you’re feeling unsure or want a second opinion, reach out to us. 

We’ll connect you with a good mortgage broker who can make the process simple and help you find the right mortgage for your needs.