personal loan for deposit

manny1481

In a bit of a dilema here.
Need 15k for house deposit for first time buyer

got 10k (most of which given to me from parents)
I have been offered the other 5k from by boss at work (been in job 12yrs)
have to pay back with 0% interest but on my terms so say just £100 a month which is easily affordable.
But mortgage lenders will not even look at me if i tell them i am paying back this money, as it is a loan.

If i was given all the money from my parents (as a gift) and in future pay them back in a lump some from money from my boss, once I have moved into my new house a few months later.

I know this is wrong, and i am going to get slated on here for suggesting this - but I cannot see another way unless I just save up the 5k myself which may take me 1 year !!!!

I wouldn't struggle to pay the money back and my boss would never take the money if he knew I was struggling with any repayments. But convincing the mortgage lenders of this is not worth my effort. Any deposit money borrowed is a no no.

I await the onslaught on here but would be grateful for constructive suggestions please.

[Deleted User]

manny1481 wrote: »

unless I just save up the 5k myself which may take me 1 year

I think there's the answer. No fraud committed, no lies to be told, and it's only a year which gives you time to find a house to buy.

Joe_Bloggs

If you have been in your job 12 years and saved nothing. Then what have you been spending your salary on ? Check out your budget priorities. Learn to save some money yourself.
J_B. (The 5K saved by yourself is very commendable proposal)

manny1481

Deleted_User wrote: »

I think there's the answer. No fraud committed, no lies to be told, and it's only a year which gives you time to find a house to buy.

But is it fraud if:
The money has been given to me as a gift from parents, but then after moving in they decide they want/need some of the money back so I then borrow the money from my boss to give back to them.
There are no lies to be told, just a change in my parents financial situation a few months after they have given me the deposit.

Other than that, I will have to work very hard and hope my boss understands my horrid situation and gives me a nice 5k xmas bonus this year (this i'm dreaming of)

[Deleted User]

It's fraud if you know it's not a gift. And your parents would need to provide a letter stating it is a gift and that there is no way they would want it back in the future.

The working very hard bit sounds like a good plan. That's how I bought my house and it seemed to work fine.

spadoosh

manny1481 wrote: »

But is it fraud if:
The money has been given to me as a gift from parents, but then after moving in they decide they want/need some of the money back so I then borrow the money from my boss to give back to them.
There are no lies to be told, just a change in my parents financial situation a few months after they have given me the deposit.

Other than that, I will have to work very hard and hope my boss understands my horrid situation and gives me a nice 5k xmas bonus this year (this i'm dreaming of)

Yeh there might be a change in their financial situation but legally you are not expected to pay them back and the bank would expect you to not pay them back.

Save up its more satisfying plus youll save yourself a couple hundred pound a month for a few years after youve bought. Plus it helps prevent any nasties should god forbid harsher times come and you cant pay back your boss. Would never like to be in debt with my boss. even though its my mum!

KingElvis

If the bank cottoned onto your little scheme then you'd be up the creek without a paddle.

Thrugelmir

manny1481 wrote: »

I know this is wrong, and i am going to get slated on here for suggesting this - but I cannot see another way unless I just save up the 5k myself which may take me 1 year !!!!

Can you afford to buy a house? If you struggle to save £400 in a month. Then sounds as if your finances are insufficient.

spadoosh

Thrugelmir wrote: »

Can you afford to buy a house? If you struggle to save £400 in a month. Then sounds as if your finances are insufficient.

I think most people would struggle to save £400 a month whilst paying rent etc. i certainly would yet have just purchased my first house it is very affordable. This is why we have people locked out of buying, they cant afford to rent and save for a deposit and seen as rent is similar to mortgage costs if they can afford to rent and save £400 a month then they almost certainly can afford to buy.

Thrugelmir

spadoosh wrote: »

I think most people would struggle to save £400 a month whilst paying rent etc.

To do so requires a complete cut back on spending. Not saying its easy. Down to personal choice.

Dorisx

We got our deposit from Grandparents but it IS expected to be paid back ... at a rate of £250 a month, something that we wont struggle with. We were asked by our mortgage advisor where we had got the deposit from and we were honest and told him it was from Grandparents but as a 'loan' in the sense that it was paid back but it was all 0% apr with no real date as to when it had to be paid back ect ... Our mortgage advisor was fine with this so I dont really see the problem?

Could you and your boss not just sort out the loan and then just you declare you have a £5000 loan but dont declare it was for your deposit, people buy homes with debt - alot people with alot more than £5000 in debt!

Maybe i'll be shouted down for telling you to lie but this is the same situation alot of people buying are in! Its hard to save a deposit when you have bills to go out!

Good luck whatever you decide to do!