Family trust fund investing in us as our 'mortgage lender'?

Lfalz

Our mortgage deal comes to an end in a couple of months so we are looking for a new 5 year fixed rate deal to replace our current 5.19 rate with Natwest. At the same time, close relatives are executors of a family trust fund which is looking to invest in something to give a better rate of return than its current savings account.

Logic would say that in theory the trust could act as our mortgage lender, thereby giving both parties a mutually attractive rate of interest...

Does anyone have any knowledge / experience of this at all? One of the risks (apart from the fact that we are not sure if legally a trust can set itself up to be a money lender) is that the trust may need to access the funds at short notice, in which case we could be left needing to find a new mortgage lender just as interest rates are sky high.

We have considered offset deals, using the trust's money to offset the mortgage which would give us the security of a fixed rate to fall back on should the money be withdrawn, but can't find anywhere you can link a mortgage to an account in someone else's name.

Any advice gratefully received!

Trying_to_be_good

Not sure about whether the offset account could be held in the name of the trust, but I googled 'offset family mortgage' and it came up with some lenders - probably easier for you to try the same google search than for me to try and paste a load of links here, not knowing your circumstances etc!

Senior_Paper_Monitor

The trust will almost certainly need to be 'discretionary' (and have no specific guidelines forbidding it) to permit this. Quite a complicated area - take advice - in in particular the trustees should ensure they are fuly aware of their trust authority/responsibilities.