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    • Celesse
    • By Celesse 14th Mar 17, 9:58 PM
    • 13Posts
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    Celesse
    Mortgage interview and debt to family
    • #1
    • 14th Mar 17, 9:58 PM
    Mortgage interview and debt to family 14th Mar 17 at 9:58 PM
    Tomorrow we have a mortgage interview and am wondering how to handle the following.

    Myself and partner were in debt and my parents lent us the money to pay it all off. Its a sizeable £20k. But we are only paying back £100 per month and if we don't finish paying it before they die it just comes off our inheritance. If we find ourselves in a better financial situation we can increase the payments and if things got dire I'm sure we could stop the payments.However we do have a loan agreement which we have signed. The monthly standing order can be seen on our bank statements and we bank at the same place we are getting our mortgage.

    We got our Agreement in Principle online and all it asked for is the monthly amounts for personal loans rather than the outstanding balance, but I'm a little concerned that the outstanding balance would be off concern to the lender.

    Is the amount of debt going to count against us, or will it not as its with family? Should we be completely upfront, or should we sugar coat it?
Page 1
    • xylophone
    • By xylophone 14th Mar 17, 10:47 PM
    • 22,396 Posts
    • 12,917 Thanks
    xylophone
    • #2
    • 14th Mar 17, 10:47 PM
    • #2
    • 14th Mar 17, 10:47 PM
    If you are asked for the outstanding balance then you will need to provide the information.

    Just answer any question fully and accurately.
    • hazyjo
    • By hazyjo 14th Mar 17, 11:44 PM
    • 9,342 Posts
    • 11,778 Thanks
    hazyjo
    • #3
    • 14th Mar 17, 11:44 PM
    • #3
    • 14th Mar 17, 11:44 PM
    Unless your parents decide it's a gift now, there is no way of sugarcoating it.

    Are they charging you interest?

    The lender will more than likely deduct the £20k (and prob more) from what they will lend you. Was in a similar boat, despite my then husband guaranteeing money coming from the sale of his flat to clear his debt. Not all lenders are the same though so will have different lending criteria. What we paid each month was irrelevant as far as the debt was concerned, they wanted the final total of debt.

    Would suggest seeing an all of market broker (not one from the EA) rather than going direct to lender (presuming that's what you meant).

    Good luck. Let us know how it goes as handy for anyone finding the thread in the future!

    Jx
    2017 wins: Opera tickets; film preview; lipstick; Ideal Home Show tickets + afternoon tea & bottle of Champagne; 2 cases of NKD; notebook; bath rack; books; film Premiere; Broadchurch DVDs; lipbalms; hamper (food/wine/Echo Dot/Jo Malone goodies); Avon lippies
    • Celesse
    • By Celesse 15th Mar 17, 9:03 PM
    • 13 Posts
    • 4 Thanks
    Celesse
    • #4
    • 15th Mar 17, 9:03 PM
    • #4
    • 15th Mar 17, 9:03 PM
    So we were completely up front about the debt and took along the contract we signed with my parents. As the payments are flexible and my parents would allow a payment breaks as and when needed he didn't count it as a normal debt but just made a note of it elsewhere. He wasn't worried about the outstanding outcome since the debt is wiped off by my parents death if we don't manage to pay it back (its just taken off our inheritance). So best possible outcome for us.
    • AdrianC
    • By AdrianC 15th Mar 17, 9:09 PM
    • 14,789 Posts
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    AdrianC
    • #5
    • 15th Mar 17, 9:09 PM
    • #5
    • 15th Mar 17, 9:09 PM
    You owe your parents the thick end of £20k, to pay debts off... and yet you've got a 5% (minimum) deposit to buy a property?
    • Celesse
    • By Celesse 15th Mar 17, 9:17 PM
    • 13 Posts
    • 4 Thanks
    Celesse
    • #6
    • 15th Mar 17, 9:17 PM
    • #6
    • 15th Mar 17, 9:17 PM
    You owe your parents the thick end of £20k, to pay debts off... and yet you've got a 5% (minimum) deposit to buy a property?
    Originally posted by AdrianC
    My parents have given us an additional amount of money as a gift for the deposit.
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