What is the new First Time Buyer ISA?
The Budget plans a new account from April 2029, replacing the Lifetime ISA for new savers then. The policy table gives 6 April 2029. It will allow £4,000 annual contributions within the overall ISA allowance. The 25% government bonus is calculated on the final account balance at a qualifying purchase, capped at £20,000.
Who and which homes?
The published design is for people aged 18 or over, with no upper age restriction, buying their first home with a mortgage. The whole-property cap stays £450,000. The account must be held for a year; one account at a time is allowed.
What happens to an existing LISA?
Existing LISAs can continue under their current terms. The response allows a LISA and the new account towards the same purchase, subject to their rules, but does not allow LISA-to-new-ISA transfers.
Help to Buy ISA full-balance transfers are planned outside the annual contribution cap between 6 April 2029 and 1 December 2030. Other ISA transfers count against the £4,000 annual limit.
The design provides for the bonus at exchange and completion within 90 days. Provider instructions and legislation will matter before anyone uses it.
What should I do today?
No provider or application route is verified as open. This is a future policy, rather than a reason to delay a purchase or close an account. Use today’s savings rules for your current plan.
Questions you might be asking
Has the £450,000 cap increased?
No. The planned new account retains the £450,000 whole-home price cap.
Can I open the new ISA now?
No. Its planned start is April 2029. Operational provider availability still needs checking nearer launch.
Sources
Original information checked 28 October 2026. Lender criteria and government plans can change.
What to do next
Start with what you can afford each month, then check the cash and conditions for the route you are considering. Download the questions checklist.
Build my starting budget →Get Your First Home updates and opening-date reminders →Optional emails from Lynton Mortgages. Separate from government pre-registration.