best way to finance sons mortgage deposit

CLAPTON

noel41 wrote: »

oh my God!!
how many people on here dont trust their own kids?
i do, and i love them as well, which is what the original question was about.
we all know that there are greedy family member stories out there, which are true.
but if you cant look at your kids, who you have raised, and watched how they have grown and seen the morals and principles they live by, and be sure that they would rather go broke than let you down then i am afraid i can only feel sorry for you.
how about we stop trusting the banks eh???
and i was looking for advice as to the best way to help them get the deposit, this will greatly reduce their repayments, and so they could use the reduced payments saved to pay me back starting straight away.
without a deposit they are really struggling to get an offer, any offer, never mind one that screws them into the ground.
all i am trying to do is what any parent would (i hope) in the present economic situation, after the banks have shafted this country, i realise that they are now screwing over most first time buyers, requiring large deposits, and charging stupid interest rates.
my son never asked for anything, i asked him how his bank interviews were going, he gave me simple and clear answers to the reasons why he was having problems getting a mortgage, thats it no hinting, no begging, enquiries as to could i afford to help.
but as his father i thought to myself, maybe i could help.
i have roughly 70000 to 80000 equity in my home, could I in some way use that fact to help him?
to those who gave some advice, Thank you,
to those who see only money grabbing family members, or maybe losing some money while trying to help your children as some terrible catastrophe.
then i am afraid i have only pity for you.

noel41

alternatively you could have said ... thanks very one for bothering to reply

LilacPixie

My best advice would be rather than looking at ways to borrow money to fund your sons deposit you look at a way of saving it to gift to them or alternitivly support then in their own savings plan, let them live with you rent free for example.

I really don't think giving them cash you expect to be paid back as helping then TBH.

diable

You can trust your kids but not someone else's at the end of the day its up to you but if they do split up then it can turn into a hell of a mess make sure all terms and conditions are agreed by everyone and have it signed, sealed and delivered legally.

clairey179

I was given money from my parents as a gift to help with a deposit, and I've now paid them back (which they didn;t ask for or expect). Personally I wouldn't have felt comfortable with them borrowing money to lend to me, but that's just me, I'm sure others would feel differently. Also, I recently almost purchased a house (survey came back with a huuge list of problems, so pulled out), and my parents were going to lend me the deposit until i sold my current property. i was very upfront with halifax about this from the start, and they had no problem with a £20k deposit coming from a family loan (this was only about 4-5 months ago). Mind you, again, they didn't need to borrow the money to lend it to me.
I think a previous posters idea of saving the money to then give to them is a sensible one. Maybe you could offer to match their own savings so it's a bit less for them to save?

nearlyrich

If my previous post implied that Noel should not trust his son that was not my intention I was just offering my recent experience in answer to why lenders don't like gifted deposits and borrowed deposits.

I recently offered my DD some assistance (10%) with her 15% deposit, half of it is a gift and half is a loan, the rest is coming from her savings, as she also needs some money to upgrade the property. The BS wanted a letter stating that my contribution is a gift and that I have no interest in the property I thought that was useful information as it's current and practical. I trust my DD to keep to the agreement we have made and I assume that the OP trusts his son, personally I would not borrow money to lend her I have saved some of her contribution to the house since she started working and I have a similar sum allocated for my son when he gets to buying a property too. I think it will be more useful now than when I snuff it becasue I intend to live till I am 106 at least!