Loaning my son money

jamesd

The mortgage company isn't lending to him, it's lending to you. Doesn't matter who he's writing the cheques to, the interest is still being paid to you. But best to pick up the phone and discuss with HMRC so you'll get it officially.

getmore4less

dimbo61 wrote: »

Just to confuse things even more have you looked at the Yorkshire Building Society friends and family offset mortgages.
Now your son takes out a mortgage with them and you put money into an offset account in YOUR name but linked to his mortgage.
You earn no interest but he saves interest on the money you have offsetting his mortgage.
If you need some or all of the money you go down to the branch with your card and take out your money from your account.
If your son and partner break up then the money is in your account and nothing to do with any split.
The taxman is not interested because you get no interest
Your son and his wife will make the normal mortgage payment each month but much more of it will go to repaying the capital and not interest.
Please consider

The money does not exist they are borrowing it at base+2% on their own house.

They should be able to get a motgage themselves at around the same rate(FD) with LTV 50% and salary over £15k borrowing around £40-£45k

This is just complications that are not needed.

Investigate them getting a mortgage.