Can I remortgage my house and lend the money to my son to buy a house

interceptor02

We are waiting for the approval from my son lender. I then approach my lender for a remortgage. I dont think there will be a problem. Just depends on how long it takes to go through.

I was orginally going to get my son to approach our lender for the mortgage as we all bank with the same building society but then I thought it would be a bit odd. I go to the building society and ask for a 20K remortage and then building society asks my son where's the 20K depoist coming from and my son says it from my parents. I sure it would not take long for them to work it out where's the money coming from.

kingstreet

You're asking your lender for a further advance or additional borrowing. A remortgage involves moving from one lender to another, repaying your current mortgage in the process.

Have you sounded out your current lender about doing this?

If not, do it immediately in case you do have to move.

jimjames

kingstreet wrote: »

Have you sounded out your current lender about doing this?

If not, do it immediately in case you do have to move.

Definitely good advice.

If you don't know if it is possible then your son could be wasting time putting offers in on houses that he is unable to complete on.

If your son is open that he is getting a gift from you then the bank will not care that it has come from your mortgage if you have also been honest about the purpose of the further advance.

spadoosh

Recently purchased and i got a 90%ltv, there should be a good few of them knocking around, i know halifax and santander have them for FTB's. 5% would be very difficult to get

interceptor02

I after additional borrowing on my home. I dont intend moving! I simple wish to borrow 20K from my existing lender and gift it to my son. I would like to approach my existing lender as the whole family banks with the same building society.

kingstreet

interceptor02 wrote: »

I after additional borrowing on my home. I dont intend moving! I simple wish to borrow 20K from my existing lender and gift it to my son. I would like to approach my existing lender as the whole family banks with the same building society.

Additional borrowing and further advances always appear more problematic for existing lenders for some reason. I suggest you approach them asap to gauge their attitude to what you want to do.

This is a simple process for a remortgage, but with existing lenders you never know. You might get a daft answer like "we only do this for home improvements."

Thrifty_Lass

When remortgaging a property is it legal to tell the provider that it is for home improvements yet use the money, say, to gift this man's son or for some other purpose - or would this be fraudulent? Does it matter providing you can repay, after all, they will check that the property value will cover the amount borrowed and 'affordability' of loan?

kingstreet

Thrifty_Lass wrote: »

When remortgaging a property is it legal to tell the provider that it is for home improvements yet use the money, say, to gift this man's son or for some other purpose - or would this be fraudulent? Does it matter providing you can repay, after all, they will check that the property value will cover the amount borrowed and 'affordability' of loan?

As I said earlier, most lenders are happy with most purposes so the need to lie is negligible. Beware of putting home improvements, just in case the lender asks for estimates then wants to see a receipt for the work afterwards.

The only things lenders shy away from is tax payments and business start-up finance. Everything else - debt consolidation, car, second home, school fees etc are acceptable.

holly_hobby

The lender may ask for verification (ie estimates) and/or proof post completion of the home imps done - not always, depends upon the amount released, and whilst it isn't a foregone - I do know of cases where this has happened.

Honesty is always the best policy - especially when it comes to mges !!

Holly

edit - Post crossed with Kings ...