Help to Buy ISA

[runner2]

Each of my children opened one of these with a nominal amount just before the scheme was closed to new applicants a year or so ago but we now want to start making monthly payments into it. Can I make those payments direct into their ISA accounts, or do they have to do the transactions themselves, from their own bank accounts? I can’t find the answer from internet searching....

I pay into my three kids ones . Not sure if it's in the rules but as they are all students they won't be for a while

Do you transfer the money direct from your bank account into the ISA? (My 2 are also students, btw!)

Yes

I'm pretty sure when we applied for our mortgage our solicitor needed bank statements to show how the savings transferred in to our HTB ISA, so you may be required to provide statements when they eventually apply for a mortgage. Even if you transfer it to them and they pay it in from their own account then the solicitor will track back to you. Think it was related to money laundering checks.

I'm hoping once they graduate next year they will take over their own payments, so they can build up a good credit history. We may keep paying their rent instead of saving for them

Have you checked whether the money would be better in a LISA? LISAs replaced Help to buy ISAs. You can save more money a LISA and you get access to the money earlier in the house buying process. You can have both, but you can only use one to buy a house.

There’s a lot more info here: www.moneyadviceservice.org.uk/en/articles/help-to-buy-isa-or-lifetime-isa

Many thanks all - really useful info

oops sorry we have LISAs not help tp buy ISAs

Hi I'm a ex bank employee so I can help answer you query
Help to buy isa u can save 1200 the 1st month and every month after this you can save 200 per month. If u put a nominal amount in the 1st month then u have essential lost out the option of the bigger first monthly installment.
The H2BISA is still an ISA so bear that in mind when ur children want to set up another ISA to save into (if they do want to that is)
If you haven't added anything in a while ( typically a year) your children may need to submit a isa declaration form to the bank to confirm they haven't added any funds in another ia during that tax year. Once that is done u can continue to save.

1 thing to point out while u are saving the money for your children they can access this money without your permission as Isas are their money not yours once u add to them.

The point about traceability of funds mentioned about isn't relevant as much anymore when your children apply for a mortgage as all you need to do is state in writing if asked that you gifted them the money and do not want it returned.

Anyone from anywhere can transfer funds in. As long as it doesn't exceed 200 per month

Also someone mentioned adding money into savings to build up good credit. Savings have NO impact on credit rating.

@JLQ1020 thanks so much. Unfortunately we did miss out on maximising that initial bigger instalment and need to start paying now ASAP. I keep chivvying the children to give me their account details so I can set the monthly payments up but one has sent me wrong info which they’ve yet to investigate, while the other has yet to even look...

Lol you think they would be super keen to have u help them save. Ah well.

Mine love seeing those 200 pundits a month going into their accounts.

Pounds not pundits.