LISA & Help to Buy Calculator
Maximize your first home deposit with government bonuses! Calculate your 25% bonus with a Lifetime ISA or Help to Buy ISA and see exactly how much you could save.
Maximum: £333/month (£4,000/year)
Current LISA rates: typically 3-5% (check with providers)
Savings from other sources (regular savings, gifts, etc.)
Government Bonus
+£4,995
25% on top of your savings
Your Contributions
£19,980
Interest Earned
£0
Total LISA Balance
£24,975
- •Must be 18-39 to open a LISA
- •Property must be £450,000 or less (same across the entire UK)
- •Must be your first home
- •Account must be open for 12 months before using for property
- •25% penalty applies if withdrawn for non-property purchase before age 60
Frequently Asked Questions
Understanding First Home Savings Accounts
The UK government offers generous bonuses to help first-time buyers save for their home deposit. The Lifetime ISA (LISA) and Help to Buy ISA both offer a 25% bonus on your savings - that's free money towards your first home!
Lifetime ISA (LISA)
- •25% bonus on up to £4,000/year
- •Property limit: £450,000 (same across entire UK)
- •Must be 18-39 to open, account open for 12 months before use
- •Can also be used for retirement (after age 60)
Help to Buy ISA
- •Closed to new applicants (Nov 2019)
- •Max £200/month, £3,000 max bonus
- •Property limit: £450k (London) or £250k (elsewhere)
- •Bonus paid at completion through solicitor
Which is Better?
For most people, the Lifetime ISA is the better choice:
- Higher contribution limits (£4,000/year vs £2,400/year)
- No maximum bonus cap (vs £3,000 max for Help to Buy)
- Higher property price limit outside London
- Bonus added throughout the year, not just at completion
Eligibility Requirements
To use the bonus for a property purchase, you must:
- Be a first-time buyer (never owned property anywhere in the world)
- Be buying your main residence (not a buy-to-let)
- Buy a property under the price limit
- Use a mortgage (not cash purchase)
- For LISA: have had the account open for at least 12 months
Step-by-Step: How to Maximise Your Bonus
- Open a LISA as soon as possible - even with £1 - to start the 12-month clock.
- Set up a monthly standing order of up to £333.33 to spread your £4,000 allowance evenly across the year.
- Contribute early in the tax year (April) to maximise your bonus for the year.
- Track your bonus payments - the government pays bonuses annually in April.
- Do not exceed the £4,000 annual limit - excess contributions are returned and may delay your bonus.
Choosing Between Cash and Stocks & Shares LISA
LISAs come in two forms: cash (interest-bearing like a savings account) and stocks & shares (invested in the market). If you plan to buy within the next five years, a cash LISA is generally safer because your capital is protected. If your timeline is longer than five years or you are primarily saving for retirement, a stocks and shares LISA may offer better long-term returns, though your balance can go down as well as up.
What Happens at Completion
When you are ready to buy, your solicitor or conveyancer will request the funds from your LISA provider. The LISA provider then transfers the money (including your bonus) directly to your solicitor, who uses it towards your property purchase. The process typically takes a few working days, so your solicitor should request the funds in advance of your completion date.
When to Seek Professional Advice
If you are unsure whether a LISA is right for your situation - especially if you are close to the £450,000 property limit, considering using it for retirement, or trying to decide between a LISA and additional pension contributions - a financial adviser can help you make the right choice for your circumstances.
Important Information
This calculator is for illustrative purposes. Government schemes and rules may change. Always verify current eligibility requirements before opening an account. The Help to Buy ISA is closed to new applicants - only existing account holders can continue to use it.
The LISA scheme is currently under government consultation and may be subject to changes.