Strange situation... already have a house yet need to get a mortgage...

shortchanged_2

Is this anything to do with inheritance tax avoidance?

GITs

hardly, seeing as I've got to give the money back lol

CloudCuckooLand

The £60k you don't give back might attract the attention of HMRC, Council, Benefits etc...

getmore4less

So GD gives you £180k on the condition that £120k is paid back in two years.

So that is a £60k gift and a £120k loan.
*as has been said here may be implication with the gift)

Did you not think about how you would pay him back?

On £26k you need a 4.6 multiple on a LTV of 67%

Thats stretching it so you will need a broker to try and get you this.

How much of the money does he need immediately could you look at a smaller mortgage(better LTV and multiple) and a payment plan?

Engeroosi

You better start putting away money for a deposit, use this as an interest free loan and start paying it into an account as if you are paying the loan, in 2 years you might find that you have put away 20,000 and you will have decent equity in property and should achieve a re-mortgage on the property to pay your grandad back.

In general put away as much as you can just now while your mortgage free!!!

shortchanged_2

GITs wrote: »

hardly, seeing as I've got to give the money back lol

But you state you only have to give a proportion back not the full amount.

Has your grandfather got an estate worth about £380,000 by any chance?