We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Borrowing extra money from parents for a deposit?
Girlwithnoname
Posts: 7 Forumite
We are first time buyers and currently have a max £40000 deposit from a combination of savings and money from parents.
However, to afford the property that we want to buy in London we really need an extra £10,000 for the deposit. We would be buying the flat we currently rent privately through our landlord, and at a very good price for the area.
The only way of getting this extra money would be to ask my parents if we could borrow it for a fixed period, e.g. 5 years. If we were to sell the flat within this time I'd anticipate making enough profit to pay them back, potentially with some interest. However, if we weren't to sell within 5 years would we have paid enough on our mortgage to extend it by £10,000 and pay them back that way? Is this even possible? I'm aware that this may put us back to where we started on our mortgage, but would consider it worthwhile to own the property we want to buy in a desirable part of London.
We would be looking at initially borrowing £240,000 on a 2 year fixed rate of 4.19%.
Any advice appreciated - thanks!
However, to afford the property that we want to buy in London we really need an extra £10,000 for the deposit. We would be buying the flat we currently rent privately through our landlord, and at a very good price for the area.
The only way of getting this extra money would be to ask my parents if we could borrow it for a fixed period, e.g. 5 years. If we were to sell the flat within this time I'd anticipate making enough profit to pay them back, potentially with some interest. However, if we weren't to sell within 5 years would we have paid enough on our mortgage to extend it by £10,000 and pay them back that way? Is this even possible? I'm aware that this may put us back to where we started on our mortgage, but would consider it worthwhile to own the property we want to buy in a desirable part of London.
We would be looking at initially borrowing £240,000 on a 2 year fixed rate of 4.19%.
Any advice appreciated - thanks!
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.4K Banking & Borrowing
- 253.7K Reduce Debt & Boost Income
- 454.4K Spending & Discounts
- 245.5K Work, Benefits & Business
- 601.3K Mortgages, Homes & Bills
- 177.6K Life & Family
- 259.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards