Can Couples Open a Joint Help to Buy ISA? Find Out Here

You and your partner are serious about buying your first home, and you’re probably looking for every possible way to make it affordable. 

Maybe you’ve looked into joint savings accounts before, only to find the Help to Buy ISA doesn’t allow joint applications. 

So, where does that leave you? 

This article unpacks how individual Help to Buy ISAs can still work in your favour as a couple, helping you both save separately but strategically. 

You’ll find out how the scheme can actually be beneficial for couples, letting you combine two government bonuses to boost your deposit for a joint mortgage.

What is an ISA?

First things first, let’s cover what an ISA actually is. 

An Individual Savings Account (ISA) is a special kind of savings account that lets you earn interest or investment returns tax-free. 

This makes ISAs an attractive option for anyone looking to save or invest money while keeping more of their earnings out of the taxman’s reach.

There are several different types of ISAs, each with its own unique features:

• Cash ISA: This is a straightforward savings account where you can earn tax-free interest on your money. It’s a safe, low-risk option, similar to a regular savings account, but with the added bonus of being tax-free.
• Stocks & Shares ISA: If you’re looking to invest in the stock market, a Stocks & Shares ISA allows you to do this tax-free. It’s riskier than a Cash ISA, as the value of your investments can go up or down, but it also offers the potential for greater returns.
• Innovative Finance ISA: This type of ISA allows you to lend your money through peer-to-peer lending platforms, earning interest in return. It’s generally suited to more experienced investors as it carries higher risks compared to Cash ISAs.
• Junior ISA: This is for under-18s, allowing parents or guardians to save on behalf of their children. It can be a Cash or Stocks & Shares ISA, and it helps young people start off with a financial cushion when they turn 18.
• Lifetime ISA (LISA): This ISA is designed for those saving for their first home or for retirement. You can save up to £4,000 per year, and the government will add a 25% bonus to your contributions. It’s a great way to boost your savings for a big life event, but it does have restrictions on when you can withdraw the money.

Now that we’ve covered the basics, let’s dive into the specifics of the Help to Buy ISA and how it works for couples.

What is a Help to Buy ISA?

To start, let’s make sure we’re all on the same page: a Help to Buy ISA is a type of savings account that was specifically designed for first-time buyers. 

You put money in, and the government adds a 25% bonus when it’s time to buy your first home. 

This means for every £1,000 you save, the government will add £250—not too shabby when you’re putting together a deposit! 

Unfortunately, the Help to Buy ISA scheme closed to new applicants in 2019, but if you already have one, you can still contribute to it until 2029 and use it towards a property purchase until 2030.

The idea behind the Help to Buy ISA was to give first-time buyers a little financial boost, especially considering how challenging it can be to save for a deposit. 

But here’s where things get a bit tricky: while it’s great for individuals, how does it work for couples? And can an ISA be in joint names?

Can You Have a Joint Help to Buy ISA?

Let’s clear this up straight away—Help to Buy ISAs cannot be held jointly. 

Sorry to burst that bubble, but ISAs, including the Help to Buy ISA, can only be in one person’s name. 

So, if you and your partner were hoping to open a joint Help to Buy ISA to save together, that’s not possible. Each account must be opened and held individually.

However, here’s the good news: both partners can have their own Help to Buy ISA. 

So, instead of thinking about one joint account, imagine two individual Help to Buy ISAs working side by side. 

This means you can both contribute to your own accounts, and both receive a government bonus when you decide to buy your home together. 

It’s effectively double the bonus, which can go a long way towards your deposit.

How Does a Joint Mortgage Work with Individual Help to Buy ISAs?

The answer is pretty straightforward. 

If you and your partner each have a Help to Buy ISA, you can combine the bonuses from both accounts when applying for your mortgage.

This means double the bonus, double the savings, and hopefully, a bigger deposit to impress the lenders.

When you apply for a mortgage as a couple, the lender will look at both of your financial situations—income, credit scores, and of course, your deposit.

By combining your individual Help to Buy ISA bonuses, you could end up with a larger deposit, which might mean better mortgage rates and more favourable terms. 

Can You Use a Help to Buy ISA for Shared Ownership?

Yes, you can! 

If you’re considering shared ownership, where you buy a portion of a property and pay rent on the rest, you can still use your Help to Buy ISA to boost your deposit.

The government bonus works the same way for shared ownership as it does for a full property purchase—adding that 25% bonus to your savings when you complete the purchase.

Shared ownership can be a great option if buying a whole property feels a bit out of reach right now. 

It allows you to get onto the property ladder sooner, and using your Help to Buy ISA makes it even more affordable.

How to Make the Most of Your Help to Buy ISA as a Couple

While you can’t have a joint Help to Buy ISA, having two separate accounts can actually be a blessing in disguise. Here’s why:

• Double the Government Bonus. By each having your own Help to Buy ISA, you both get the 25% bonus. This means if you each save £12,000, you’ll get a combined bonus of £6,000—which can make a big difference when you’re putting together a deposit.
• More Savings Potential. Two ISAs mean two sets of savings, which can help you build your deposit faster. It’s like having two savings engines working towards the same goal.
• Flexibility. If your financial situations change—say, one of you needs to dip into savings for an emergency—having separate accounts gives you more flexibility without affecting the other person’s savings progress.

Can ISAs Be in Joint Names for Other Purposes?

You might be wondering, “can ISAs be in joint names at all?” The answer is no. 

ISAs, whether they’re Help to Buy, Cash, Stocks & Shares, or any other type, are always individual accounts.

This is part of the government’s way of ensuring that the tax-free savings allowance applies to each individual.

But just because you can’t hold an ISA jointly doesn’t mean you can’t make ISAs work for you as a couple. The key is coordination. 

By each making the most of your own ISA allowances, you can effectively double your savings power, whether that’s for a house deposit, investing, or saving for the future.

What About Lifetime ISAs?

Another option to consider is the Lifetime ISA (LISA), which also offers a 25% government bonus on savings up to £4,000 per year. 

Unlike the Help to Buy ISA, the Lifetime ISA is still open to new applicants, and it can also be used towards buying your first home or for retirement savings.

If you’re a couple, you can each open a Lifetime ISA and save towards your first home together. 

Just like with the Help to Buy ISA, you’ll each get the government bonus, which can help boost your deposit even more. It’s worth considering if you’re looking for additional ways to save.

Using Your ISA for a Mortgage: What to Expect

When it comes time to use your Help to Buy ISA for a mortgage, the process is fairly simple. 

Once you’ve found a property and are ready to complete the purchase, your solicitor will apply for the government bonus on your behalf. 

The bonus will then be added to your deposit, giving you a bigger sum to put towards your new home.

It’s important to note that the bonus isn’t available until you’re completing the purchase, so you can’t use it for initial costs like surveys or solicitors’ fees. 

Make sure you budget for those separately.

The Bottom Line

While it might be a bit of a let-down that you can’t have a joint Help to Buy ISA, the alternative—having two separate ISAs—can actually work in your favour. 

By each having your own account, you can maximise the government bonus, save more effectively, and ultimately put together a stronger deposit for your first home.

Buying a home is a big step, and anything that makes the process a bit easier, like a nice government bonus or the support of a good mortgage broker, is worth considering. 

A good mortgage broker can guide you through the process, help you find the best deals, and save you time and effort. 

So, if you and your partner are dreaming of your first place, get those ISAs working for you, and don’t forget: a good mortgage broker can make all the difference.

Get in touch with us and we’ll match you with the right mortgage broker who can help with your mortgage needs.