FTB - will Deed of Trust affect mortgage application?

out-spaced

Firstly, thank you for so much advice, personal stories and expert guidance that I've read on this site over the last few months. As a first time buyer it has been incredibly useful and so far I've been able to get as much information as I've needed by reading other posts. I've now come to the point when I need to ask a specific question and hope someone can help.

My husband and I are currently in the process of trying to buy the flat we rent and we have a deposit of 10% in savings. My husband's parents would like to help us with the other 10%. As this is coming from their savings and they don't have a pension, the plan is to return 10% of the house value when we come to sell (or reinvest in the next property and give them the equivalent percentage of that sale price when we sell in future). They fully appreciate that houses can drop in value and are happy with this risk.

My question is around our mortgage application and whether it can be affected by this contribution. As we understand it, if the money is considered a loan, then the lenders will consider us in debt to that amount. We would like to draw up a 'Deed of Trust' which will state that we do not have to pay back the money until the sale of the flat. We realise that if we do things by the book we should obviously be letting our broker know about this so it can be part of the consideration process. Does anyone have any experience of this and can offer advice? There are a couple of things on the mortgage application that are already not straightforward, so I really want to make sure that this won't have further negative impact on our application.

Also, if we ask our mortgage broker or conveyancing solicitor about this, are they bound to fully disclose this to our potential lenders?

Thanks

kingstreet

Have a read of this;-

https://forums.moneysavingexpert.com/discussion/3494083

Yes. This must be disclosed to lender and solicitor. If you fail to mention it to the lender you could find yourself spending a lot of money only to waste it when the lender finds out at the end of the process from your solicitor (who is also acting for it) and your mortgage offer is withdrawn.