If you didn’t participate in the scheme, there are other ways you can grow your deposit for a home.
Here, we look at:
What are the alternatives to a Help to Buy ISA?
A Help to Buy ISA is a type of Individual Savings Account (ISA) used to help first-time buyers save for a deposit for a home. The government-backed saving initiative was first brought in on 1 December 2015 and has been used by a number of first-time buyers all across the UK. The government then closed the scheme to new applicants on 30 November 2019.
When saving into this type of ISA, you’re able to claim a 25% bonus from the UK government on your savings. The bonus is capped at £3,000 and you’re able to save up to £200 a month.
If you opened a Help to Buy ISA before 30 November 2019, you can continue to use the account to save for a deposit. You’re able to save into it until 30 November 2029 and claim the government bonus until November 2030.
If you weren’t able to open a Help to Buy ISA before the deadline, there are other savings options available, including different types of ISAs and savings accounts. Finding the right one for your needs as a first-time buyer is key.
ISAs are a tax-efficient way to save, so you may still be able to open one and use it as a way to save for your home deposit. There are different ISAs which may be useful, including:
Please note – HSBC doesn't currently offer lifetime ISAs.
From 6 April 2024, there are changes to how old you need to be to open a cash ISA.
To open a new cash ISA, you need to be either:
ISA providers aren't obliged to offer the transitional arrangements. HSBC won't allow customers under 18 to open a new cash ISA from 6 April 2024, but will consider changing this in the future.
If you're aged 18 or over, you'll now be able to subscribe to more than one of the same type of ISA in the same tax year – subject to staying within the overall annual limit.
For example, you could subscribe to a cash or stocks & shares ISA with one ISA provider and also subscribe to one with a different provider.
This change doesn’t apply to Lifetime ISAs, where it's still only possible to subscribe to one Lifetime ISA in a tax year. HSBC doesn't offer Lifetime ISAs.
From 6 April 2024, ISA providers are not obliged to allow subscriptions to more than one ISA of the same type in the same tax year with themselves, and HSBC will not be offering this.
If you've gone a whole tax year without making a subscription to an existing ISA, you can now restart subscriptions without needing to complete a new application.
Since 6 April 2024, some providers allow you to make a partial transfer of subscriptions made in the current tax year, but HSBC is not currently allowing this.
We'll update our website if we make any changes to our ISAs in the future.
If you opened a Help to Buy ISA before the deadline, you’ll still be able to use this as a way to save money.
After 30 November 2019, you should still be able to transfer your Help to Buy ISA to a bank, building society, or credit union if you opened it before the deadline.
You’ll need to check if the provider offers a Help to Buy ISA first, and you’ll need to ensure they accept transfers.
Do not withdraw the money yourself – speak to your bank or financial provider first to understand the steps you need to take to transfer your ISA.
Find out more about transferring into an HSBC Help to Buy ISA.
You can take your money out of your Help to Buy ISA if you’re not looking to buy a property anymore. However, you won't be entitled to the bonus the government pays.
When you find a property you’d like to purchase, you’ll need to contact your bank so they can close your account. Do not withdraw the money yourself. If you do take the money out, you may not be eligible to receive the government bonus.
When you’ve closed your account, you’ll have 12 months to claim your government bonus. The bonus can’t be used to pay for your solicitor/conveyancer fees or any other indirect costs involved in buying a property.
When you close your Help to Buy ISA with HSBC, we’ll send you a statement and a closing letter within 5 days. To receive the government bonus, you’ll need to share these letters with your solicitor or licensed conveyancer along with your first-time buyer declaration. They’ll then be able to claim the bonus for you.
The government bonus is paid for the mortgage deposit only, and you’ll need to have saved £1,600 into your Help to Buy ISA, as the minimum government bonus is £400.
If your property purchase doesn’t go through, you should be able to reopen your Help to Buy ISA account and continue to save in it.
To reopen a HSBC Help to Buy ISA, you’ll need to provide us with a Purchase Failure Notice (PFN) and reopen the account within 12 months of its closure. The date of closure can be found on your closing statement. You’ll then be able to continue saving into your Help to Buy ISA until 30 November 2029 and claim the government bonus until November 2030.
