First time buyer deposit from parents query

pinkie84

Hi Winnter_summer, in my limited experience i have been very wary of the sort of scheme that you've mentioned in your post... a mortgage isnt usually agreed with a deposit that is a loan (hence my initial reason for starting this thread) as essentially you then owe 2 amounts of money. I'd be very careful and check the terms and conditions of the loan in great detail. For example do they have the right to request the entire 10% plus interest back in one go after 6 years? What is the interest rate like?

A friend of mine bought with her boyfriend using a similar scheme and while things seem ok at the moment, we're pretty sure the house was overvalued (she had to use the mortgage company that the developer specified) which may cause issues when they decide to move on. they also have a seperate account to save up the loaned deposit, but are really counting the pennies to ensure that they have enough in the pot to repay this when the time comes.