Use of Childrens Savings to pay mortgage

sarahevie

My parents did a self build and borrowed £30K from my sister and I to complete the build (they didn't take a mortgage out at any time during the build) and returned our money when we were ready to buy a house.

I was 22 when I bought my first house, they still have my sisters in trust until she gets her house she is currently 23. Our money was from inheritance from my grandfather under strict instruction to be used as a house deposit and I don't think that there was anything wrong in my parents borrowing it as we had no use for it at the time, and they gave us back double what they borrowed (much more than we would have earned in the bank.)

If you can't trust your parents who can you trust!

themull1

Do what you like - i don't know why you asked the question really. Its all your money at the end of the day.

bingham40

Missylaney, inheritance was a single amount in trust for any kids we had. When we stopped having them we divided up the inheritance and a lump sum we had saved. Technically they have only had their own accounts since they were born!

Themull1 I wasn't asking your permission. The original question was about te tax implications fir the kids. I have now found this information.

To everyone else thanks for your advice.

dzug1

As far as the inheritance money goes, if you don't pay it back your kids can sue you (or the trustees) for it when they become 18 (or whatever age the trust says if different).

moneysaymoneydo

Oh that is so not your money to spend i would be horrified if money i invested in my grand kids their parents thought it was okay to 'borrow' and you may lose your job etc or divorce and unable to pay the money back, sorry but my morals wouldnt let me stoop to that regardless of circumstances as you have said you are not asking for permission but surely you can see this is so so wrong, but then again im sure there are some that do this, as my parents have always bore into me money should go down the line not up it, ie parents give to children not the other way round and im pretty sure you wouldnt be happy sitting in a house knowing you took your kids monies to pay it?

LilacPixie

I am a bit puzzled as to who no lender will touch you for a 35k mortgage on a 330k house.

Personally I would not touch the savings. What i would do is if the repairs were essential negotiate an appropriate discount with a view to having the funds from sale of house/car/savings enough to cover house and essential repairs and then do the things i wanted too with the 1k+ a month left from costs.

nomoneytoday

IMHO there's a difference between using a child's money to pay a bill through poor budgeting, and a planned investment with a return over time such as the OP is suggesting.

firstaspect

Have you looked at other lenders other than First Direct? You may find one that is happy to lend you the money.

System

LilacPixie wrote: »

I am a bit puzzled as to who no lender will touch you for a 35k mortgage on a 330k house.

Possibly because the LTV is too low?

luckyfool

!!!!!! wrote: »

Possibly because the LTV is too low?

No lender will decline a mortgage for having too "low an ltv", as invariably a lower ltv is a positive thing from a risk perspective. Too low a loan size is a completely different matter and all lenders have minimum loan sizes, especially for more competitive products. Varying from £5,000 to £50k or even £100k the thinking being smaller loans are not worth their while or are outside their target market.